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 pri
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 pri
for 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 stoc
For those investors most interested in dividend income,
price to cash flow might be more relevant
for higher - yielding dividend paying stoc
for 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.»