Sentences with phrase «value trap stocks»

Although these value trap stocks might be trading at a low valuation compared to its past valuation or market, however, the chances of these stocks bouncing back to their historical valuation are quite low.

Of course, nothing is set in stone in the stock market and value stocks can quickly become value trap stocks.

Santoli listed several current value trap stocks.

Not exact matches

And cracks have begun to appear north of the 49th parallel; GMP Securities analyst Michael Urlocker downgraded Research In Motion on April 21, saying it «risked becoming a value trap — a stock that looks cheap but isn't because its prospects are diminishing.»

But some people worry that Valeant is what value investors might call a «value trap,» a deceptively attractive stock, at least by the numbers, that later turns out to be a money pit.

As long as you do your due diligence, looking out for phenomenon such as value traps, viewing both the individual stocks you hold in your portfolio, and your portfolio as a whole, through this lens can help you avoid getting swept away in bubbles, manias, and panics.

«Management had previously shown an unwillingness to take the necessary steps to unlock trapped value in the stock,» the bank said.

This process is also useful in eliminating optically «cheap» stocks which are actually value traps.

«The best way to avoid a value trap is to ask the obvious question; «if this stock is so cheap, why is it cheap?

And by thinking about future earnings you're also less likely to overpay for a stock or get caught in a value trap.

If so, it will be because we overestimated the cashflows that they can generate, not because we blindly walked into a trap of buying every stock trading at a low multiple of book value.

We believe our methodology helps identify the most attractive stocks at the best time to consider buying, helping to avoid value traps and lagging performance due to the opportunity cost of holding a stock with great potential but at an inopportune time.

Value investor Guy Spier writes: «I try to avoid walking into the trap of making statements about any stocks that we currently own, since the situation might later change or I might discover that I was wrong.

In order to avoid «value traps,» or cheap stocks that continue to get cheaper, the manager will generally weight until a potential stock is in an uptrend before buying.

If so, it will be because we overestimated the cashflows that they can generate, not because we blindly walked into a trap of buying every stock trading at a low multiple of book value.

Investors convince themselves that a stock makes sense because it's cheap, making it a great value is known as a Value value is known as a Value Value Trap.

This factor can be what differentiates a value stock from a value trap, since a company in trouble usually cuts its dividend payments.

That said, management recently issued an outlook that disappointed the Street, making the stock look like it could be a value trap.

Too much reliance on simple value measures alone in stock analysis can lead you into costly «value traps.»

Finally, our experience is that by encapsulating typical market behavior in our approach, a far richer array of stock recommendations can be captured, for example «the exception to the rule» in the case of value traps.

By removing the riskiest stocks from the pool at the beginning, Gray and Carlisle are a lot less likely to get sucked into a value trap.

Do you believe stocks with such low P / Es might be value traps?

When looking at net - net stocks there are a few quick ways to spot value - traps and knowing them will help you avoid most trap situations.

Apologies to my Chinese friends out there, but to avoid as many value - traps as possible I would also reject investment in any net - net stock headquartered in China.

Generally speaking, value traps are undervalued stocks which stay this way for prolonged periods and in some cases, they never return to their «intrinsic value».

In deciding how much of each stock to own, a focus on business Quality (as measured by profitability, stability and financial strength) helps us to maximise our exposure to those stocks which are both attractively valued and good quality and to avoid «value traps».

These are excellent examples of the challenges in value investing — a stock could be defined as under - valued for a good reason, and may remain so for a significant period of time, perhaps years or forever if the company has experienced a permanent and material change in operations (a «value trap»).

Benjamin Graham, the father of value investing, found the biggest risk of buying bargains was purchasing low quality stocks or value traps.

I don't think the Value Trap really has any validity for the Third Avenue portfolio of value common stValue Trap really has any validity for the Third Avenue portfolio of value common stvalue common stocks.

The unofficial definition of a «value trap» is a cheap stock that is stuck around the current price.

-LSB-...] Value Versus The Market Since: The Magic Formula Effect Theory is that value strategies are now so well known and easy to implement that undervalued stocks are completely picked over, and the only cheap stocks left are value tValue Versus The Market Since: The Magic Formula Effect Theory is that value strategies are now so well known and easy to implement that undervalued stocks are completely picked over, and the only cheap stocks left are value tvalue strategies are now so well known and easy to implement that undervalued stocks are completely picked over, and the only cheap stocks left are value tvalue traps.

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.

Only hind - sight will tell whether the stock was a value - trap or a buying - opportunity - whether the company stagnates and dies, or recovers.

The goal is to avoid value traps and only invest in real value stocks.

Sometimes high yielding stocks are value traps and this strategy tries to get rid of these stocks in 2 ways.

Some stocks are value traps and even if they're relatively cheap, there might not be any catalyst for recovery.

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 stock analyses of Credicorp in Taking Stock in BAP, Whirlpool in Taking Stock in WHR and discussed my pick for the Ultimate Value Stock in BAP, Whirlpool in Taking Stock in WHR and discussed my pick for the Ultimate Value Stock in WHR and discussed my pick for the Ultimate Value Trap.

Notes through April 18, 2006 Revisiting P / E10, Revisiting P / E10: Dividends, NFB Closed, Links Repaired, The Big Project, Calculator D, Long - Term Stock Returns, My Most Recent Articles, Dividend Calculators A and B, Dividend Growth Sensitivity Study, Three Powerful Advantages of Dividend Strategies, Calculator H, CTVR Calculator A, Dividends and Constant Terminal Value Rates, HCTVR Calculator A, May 2006 Highlights, Investment Traps, Variable Terminal Value Rate Calculator A, Variable Terminal Value Rate Calculator B, Why People Ignore Valuations, Latching Calculators, Latched Threshold Survey, Investing for Dummy — The Six «Must Know» Rules, Early Success with Latch and Hold, Continued Success with Latch and Hold, Adding Constraints to Latch and Hold, Time To Catch Up Calculator Notes through June 12, 2006

The contention is whether these net current asset value stocks will perform as they have in other countries, or whether they are destined to remain net current asset value bargains, the classic «value traps.»

The concept of value investing is certainly not new to investors, nor is the notion of a value trap (when the stock price takes a dive and it looks like a better value).

Revisiting P / E10, Revisiting P / E10: Dividends, NFB Closed, Links Repaired, The Big Project, Calculator D, Long - Term Stock Returns, My Most Recent Articles, Dividend Calculators A and B, Dividend Growth Sensitivity Study, Three Powerful Advantages of Dividend Strategies, Calculator H, CTVR Calculator A, Dividends and Constant Terminal Value Rates, HCTVR Calculator A, May 2006 Highlights, Investment Traps, Variable Terminal Value Rate Calculator A, Variable Terminal Value Rate Calculator B, Why People Ignore Valuations, Latching Calculators, Latched Threshold Survey, Investing for Dummy — The Six «Must Know» Rules, Early Success with Latch and Hold, Continued Success with Latch and Hold, Adding Constraints to Latch and Hold, Time To Catch Up Calculator Notes through June 12, 2006 The Lower Latch and Hold Threshold, Additional Constraints with Latch and Hold, Current Research I: Latch and Hold, Dividend Investors, The Accumulation Stage, Idiot Switching, Latch and Hold Spreadsheet A, Typical Values of P / E10, Growth with Switching, Special Note about Mean Reversion, No New Discovery This Time, Looking a Little Bit Harder, The Stock - Return Predictor, Calculator I. Notes starting June 13, 2006.

This is because the value factor can screen for stocks that are attractively priced, while the momentum factor looks for stocks that have recently demonstrated strong risk - adjusted returns, which may help reduce the probability of buying into a value trap.

(A value trap is a stock that appears to be cheap by traditional valuation metrics, such as price - to - book.

This is because value stocks showing poor momentum can be removed from a portfolio (depending on when it reconstitutes), reducing the chances of continuing to hold a value trap.

Inexpensive stocks are generally desirable, providing they do not represent value traps.

A value trap occurs when a stock appears cheap, but is trading at low multiples due to underlying problems with the stock's issuer.

We only want to buy the stocks of companies that are real value investments, not value traps.

September 2006 by Wayne Thorp AAII's Value on the Move screens seek value - oriented stocks but attempt to avoid typical value traps by adding criteria for earnings growth and relative streValue on the Move screens seek value - oriented stocks but attempt to avoid typical value traps by adding criteria for earnings growth and relative strevalue - oriented stocks but attempt to avoid typical value traps by adding criteria for earnings growth and relative strevalue traps by adding criteria for earnings growth and relative strength.

Enabled by modern technology, investors can now enhance a pure value strategy by using momentum to improve timing, measuring quality to avoid value traps, and diversifying active bets into less efficiently priced small stocks.

While sifting through this High Yield Dividend Stocks list, be sure to avoid this dividend value trap.