Sentences with phrase «paying a higher price for stocks»

People who pay high prices for stocks based on high growth assumptions, are asking for trouble up the line» Chris Davis
The time to get into the market is not always when it's bullish, because then you're paying a higher price for stocks.
But you'll also be forced to pay a higher price for the stocks you buy with each paycheck.

Not exact matches

«What price is too high to pay for a company's stock if the company spends every waking minute trying to replace you?»
As long as people keep going to movies and are willing to pay a higher price for a better offering — and he thinks they will — this stock will keep climbing.
Can you imagine investing in the stock market where your price was determined at a future date and the better that company performed the HIGHER the price you paid for that investment.
The reported high and low, and closing sales prices per share of Company common stock and the cash dividend paid per share for each quarter during 2007 is shown in the table below.
Corporate raiders pay their high - interest bondholders, while financial managers also are using this ebitda for stock buy - backs to increase share prices (and hence the value of their stock options).
In order for companies to keep paying higher dividends, their earnings also need to increase which usually causes the stock prices to go up as well.
This makes sense for the obvious reason that paying lower prices / valuations for stocks should lead to higher than average returns just as paying higher prices / valuations should lead to lower than average returns.
No one would ever exercise options «out of the money,» because they would have to pay for the stock at a price higher than the market price.
The reported high and low and closing sales prices per share of our common stock and the cash dividend paid per share for each quarter during 2010 is shown in the table below.
In the event of a change of control (as defined in the plan), the compensation committee may, in its discretion, provide for any or all of the following actions: (i) awards may be continued, assumed, or substituted with new rights, (ii) awards may be purchased for cash equal to the excess (if any) of the highest price per share of common stock paid in the change in control transaction over the aggregate exercise price of such awards, (iii) outstanding and unexercised stock options and stock appreciation rights may be terminated, prior to the change in control (in which case holders of such unvested awards would be given notice and the opportunity to exercise such awards), or (iv) vesting or lapse of restrictions may be accelerated.
«The risk of paying too high a price for good - quality stocks — while a real one — is not the chief hazard confronting the average buyer of securities.
He looks to buy these businesses at low prices of course, but often times he pays a price that leave many value investors scratching their heads (i.e. paying over 20 times earnings for Heinz, and 20 % more than the stock's all time high).
If you're looking to get the most value out of your stocks without paying a high price, it might be a good idea to aim for stocks with a low P / E ratio.
Consciously paying more for a stock than its calculated value - in the hope that it can soon be sold for a still - higher price - should be labeled speculation (which is neither illegal, immoral nor - in our view - financially fattening).
This predictive power is strong for speculative stocks with highly subjective valuations (small - capitalization stocks, stocks without positive earnings, growth stocks and stocks that pay no dividend), because their prices tend to be most overvalued when sentiment is high.
That may be because the underlying companies tend to be mature and stable, or simply because paying high prices for growth stocks is less appealing when inflation and interest rates are elevated.
Consciously paying more for a stock than its calculated value - in the hope that it can soon be sold for a still - higher price - should be labelled speculation (which is neither illegal, immoral nor - in our view - financially fattening).
Back in 2013, the price - to - sales ratio was only 1.3 x. Just five years later, investors are now paying about 75 % higher stock prices for each dollar of annual sales.
For those who are unfamiliar, covered calls let you make a deal with other traders who want to pay you cash upfront — money that goes straight into your brokerage account — for the opportunity to buy a stock you already own at a higher priFor those who are unfamiliar, covered calls let you make a deal with other traders who want to pay you cash upfront — money that goes straight into your brokerage account — for the opportunity to buy a stock you already own at a higher prifor the opportunity to buy a stock you already own at a higher price.
While capital gains are generally associated with stocks and funds due to their inherent price volatility, a capital gain can occur on any security that is sold for a price higher than the purchase price that was paid for it.
Limit orders: A limit order specifies the highest price you are willing to pay for a stock.
If NLNK is 35 (strike price) or higher on Jan 16 then you make a 73 % annualized return (you will receive $ 35 / share for your stock on Jan 17, after having paid $ 34.19 for it today).
Because the option is «in the money» (i.e. stock price is higher than the option strike price) the buyer of the option will exercise his right and pay Chris $ 25 / share (the strike price) for 100 shares.
This is because shares of that stock are more rare, and people are willing to pay a higher price for them.
So when paying a lower price for a stock, an investor should be able to «lock in» a higher yield.
It's equally hard to do it by paying too high a price for stocks.
So I'm getting paid to buy the stock at one price and I'm getting paid to sell it for even higher.
If I put a sell order with a limit price of $ 26.85 (higher than the current price), the order won't get filled until the stock price goes up a bit and someone agrees to pay $ 26.85 for my REI shares.
These advantages can be squandered if the investor pays too high a price for his stock.
Should you ignore the «deep value» stocks and pay high prices for well governed stocks?
For those investors most interested in dividend income, price to cash flow might be more relevant for higher - yielding dividend paying stocFor those investors most interested in dividend income, price to cash flow might be more relevant for higher - yielding dividend paying stocfor higher - yielding dividend paying stocks.
If the company continues to perform well, stock prices will rise and stockholders get the opportunity to sell units of stock for a higher price than what they paid for it.
Because the defensive investor desires a portfolio in which he puts minimal effort, the Graham Number is an easy metric to use as a screen to avoid paying too high a price for a stock.
Even if you pick the best stocks out there, if you have no plan for how they fit into your portfolio before you begin buying, your portfolio can pay a high price.
(MarketWatch: Feb 9, 2016) MarketWatch columnist Philip van Doorn says amid the worst start for U.S. stocks in six years, investors can find prosperous dividend - paying companies at price discounts with higher yields.
Beta: a measure of the volatility of a stock (or portfolio of stocks) and how closely it correlates with the overall market bID price: the highest price potential buyers are willing to pay for a stock.
Although a precipitous drop like that isn't particularly telling by itself, because a stock that is overvalued by 20 % dropping by 6 % is still overvalued, this particular company wasn't overtly expensive before the drop and actually fell into what could be deemed a fair price to pay for an otherwise high quality company.
In the markets overly optimistic investors pay high earning multiples (high prices) for stocks of companies because they expect high growth.
No one would ever exercise options «out of the money,» because they would have to pay for the stock at a price higher than the market price.
Growth investors believe that earnings momentum will drive the stock price significantly higher and are willing to pay a premium for those stocks that show the promise of rapidly increasing in value.
If you can sell a stock for a price that is higher than what you paid for that stock, you keep the profit.
For example, a dividend paying stock's yield could be high simply because its share price has dropped sharply (because you use a company's share price to calculate yield) in anticipation of a dividend cut.
Consciously paying more for a stock than its calculated value — in the hope that it can soon be sold for a still - higher price — should be labeled speculation.»
He looks to buy these businesses at low prices of course, but often times he pays a price that leave many value investors scratching their heads (i.e. paying over 20 times earnings for Heinz, and 20 % more than the stock's all time high).
And perhaps just as important, you should aim to pay the right price for a high - quality dividend growth stock.
The result of all of these new stock investors (i.e. the former bond investors) jumping into the stock market is that the price of many dividend - paying stocks has climbed higher, as there are more and more buyers for these large, liquid, relatively stable companies.
Just as growth - stock investors will pay a higher price - to - earnings ratio for higher earnings growth, private - market - value investors will pay a higher multiple of cash flow for faster cash - flow growth.»
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