Sentences with phrase «value trap»

A "value trap" refers to an investment that appears to be cheap or undervalued, but turns out to be a poor investment choice. It tricks investors into thinking they have found a bargain, yet the underlying company or asset continues to decline in value or underperform. It is essentially a deceptive investment that leads to financial losses. Full definition
But as a way of avoiding value traps — stocks that are cheap for a reason — they also suggest using a momentum filter.
A poor and inefficient management of a company is a sure sign of value trap.
Some of the measures that lead you into value traps are statistical.
Of course, nothing is set in stone in the stock market and value stocks can quickly become value trap stocks.
It looks for relatively undervalued stocks but tries to avoid value traps by only selecting the companies with the highest stock price increase over the last 6 months.
We only want to buy the stocks of companies that are real value investments, not value traps.
However, there are others that can become value traps.
I stumbled into a lot more value traps when I was younger, but not so much anymore.
To me, it seemed to be the ultimate value trap — a modern buggy whip company.
It's more common than you might think, and accounts for many value traps.
If the management lacks the driving force and their strategic vision is cloudy, then the investors of that company might suffer from value traps.
Can you also write about value traps or checklist to avoid a mediocre business.
But sometimes the deck is stacked against you and you fall into low - value traps while dating online.
You're less likely to find value traps when management uses its finances to work on the company's finances.
In many cases, a plan to sell may prove the best bet — perhaps you're stuck in a go - nowhere value trap?
A big debt is an actual trigger for the most deadly value traps.
For me being so restrictive means missing out on many potential «bargains», but also increases the risk of hitting value traps.
The momentum overlay seeks to avoid value traps by gaining exposure to value stocks that are displaying relative price strength.
Of course, you wouldn't want to construct a portfolio that is full of out - of - favor things, because then you likely have a portfolio full of value traps.
The problem with that is you can get caught in too many value traps.
This economy is based on unlocking value trapped in failed coins and achieving a network effect by amalgamating the communities of these failed coins into a single one.
Speaking at the Value Investing Conference, Jim Chanos, President of the Kynikos Associate and a noted short in the market listed 5 different sectors and 5 representative stocks as value traps.
Unlocking value trapped in dead coins, adding value through the integration and amalgamation of dead coin communities under the CoinJanitor umbrella to create a network effect, and allowing people to transfer that value openly into cryptocurrency markets will be the first step we take in that direction.
After reviewing these potential value traps with BAMM, we can better determine if taking a long position is a good idea or not.
Now my question for you that might interest all reader is how you handle potential value traps like Staples that spring on you in slow motion.
While some inexpensive companies will prove to merit their cheap prices and will disappear, the inevitability of value traps does not invalidate a devotion to a value - focused strategy.
A good example of value traps over the last ten or so years are businesses which have been subject to technological obsolescence.
This process is also useful in eliminating optically «cheap» stocks which are actually value traps.
«Given that value traps often result from companies squandering your capital, we put a lot of emphasis on management's capital - allocation prowess.
Santoli listed several current value trap stocks.
Seems like a pretty big value trap.
If you want to learn more check out these resources: Key Financial Ratios for Investing Avoid Value Traps -LSB-...]
I shared my stock analyses of Credicorp in Taking Stock in BAP, Whirlpool in Taking Stock in WHR and discussed my pick for the Ultimate Value Trap.
Argo Group (ARGO: LN): Argo's share price is now revisiting 5 - year lows... Obviously, frustrated shareholders have (understandably) concluded ARGO's a permanent value trap, and its illiquidity has exacerbated the share price decline as they've exited.
Inexpensive stocks are generally desirable, providing they do not represent value traps.
The most recent value trap I fell into was $ ARCP (granted, there were other things going on there) and the most recent one I may have entered is $ BP.
«I'm trying to buy companies that are young in their life cycle, not old value traps,» portfolio manager Frank Jennings said in an Oppenheimer - produced video.
That might reflect Andrew Foster's long - ago observer that emerging markets were mostly value traps, where corporate, legal and regulatory structures didn't allow value to be unlocked.
While sifting through this High Yield Dividend Stocks list, be sure to avoid this dividend value trap.
I don't think we can categorically declare that these stocks are value traps until we give them time to work their way out of the screen one way or another (i.e. they're too expensive because the stock price is up, or the fundamentals are destroyed).
The problem with magic formula companies is that too many of the stocks in the top 50 are value traps whose business models aren't sustainable, and are on the list when the past 12 months is a poor predictor of future returns.
A genuinely undervalued resource stock, in terms of net cash and / or actual reserves & resources, doesn't necessarily make a good investment — like other value traps, its market value may never converge towards its (perceived) fair value.
So if you understand the capital cycle, you stand back from the madness of the crowds, as things are being bid up, but you also avoid the great value traps, which are constantly hitting so called contrary and old value investors.
Why do value investors fall into value traps?
CoinJanitor essentially unlocks value trapped in failed coins and conglomerates them all into a single new one, JAN..
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