Investing in earnings potential is an effective means of investing in stock. When picking stocks an investor looks for a number of factors. Does the stock pay dividends? Does the company have non performing assets that can act as a margin of safety in case of an economic downturn? Is the company in a sector that is likely to grow over time and do the company’s products compete well in that sector? Does the company have a strong product development division and is it able to market its products effectively?
Dividend stocks provide a steady source of income to the investor. The ability to pay dividends over an extended period is a measure of the financial well being of the company, a reassurance in long term investing. The presence of assets that can be sold if the company gets into trouble can be an attractive feature when buying stock but will be more attractive if the company sells the assets in order to pass dividends on to its shareholders.
Product development, marketing, and sales all have to do with earnings in the present and future earnings. When investing in earnings potential this is where to look. Intrinsic stock value is based upon a rational expectation that a company will generate increasing amounts of income into the distant future. The ideal situation for a long term investor is to do fundamental analysis and find stocks that are underpriced when compared to their intrinsic stock value. These overlooked stocks will have some feature that makes the market either ignore them or discount them.
A common way to search for undervalued stocks is to screen for a low price to earnings ratio or low price to sales ratio. In addition, looking for stock price volatility and analyzing with Candlestick analysis can be rewarding. No matter what the fundamentals say the wise investor will want a clear image of what stock prices will do next. Using technical analysis tools such as Candlestick pattern formations the investor as well as the day trader can get a clear picture of whether market trends will continue or if a market reversal is around the corner. Investing in earnings potential starts with the fundamentals but making the most advantageous purchases and sales of stock often comes from using Candlestick trading tactics when picking best time to buy stocks or sell stocks.
2. Investing in earnings potential is
an effective means of investing in
stock. When picking stocks an
investor looks for a number of
factors.
By: www.CandleStickForums.com
3. Does the stock pay dividends? Does the
company have non performing assets that
can act as a margin of safety in case of an
economic downturn? Is the company in a
sector that is likely to grow over time and
do the company’s products compete well
in that sector? Does the company have a
strong product development division and
is it able to market its products effectively?
By: www.CandleStickForums.com
4. Dividend stocks provide a steady
source of income to the investor.
The ability to pay dividends over
an extended period is a measure of
the financial well being of the
company, a reassurance in long
term investing.
By: www.CandleStickForums.com
5. The presence of assets that can be
sold if the company gets into
trouble can be an attractive feature
when buying stock but will be
more attractive if the company
sells the assets in order to pass
dividends on to its shareholders.
By: www.CandleStickForums.com
6. Product development, marketing,
and sales all have to do with
earnings in the present and future
earnings. When investing in
earnings potential this is where to
look.
By: www.CandleStickForums.com
7. Intrinsic stock value is based upon
a rational expectation that a
company will generate increasing
amounts of income into the distant
future.
By: www.CandleStickForums.com
8. The ideal situation for a long term
investor is to do fundamental
analysis and find stocks that are
underpriced when compared to
their intrinsic stock value.
By: www.CandleStickForums.com
9. These overlooked stocks will have
some feature that makes the
market either ignore them or
discount them.
By: www.CandleStickForums.com
10. A common way to search for
undervalued stocks is to screen for
a low price to earnings ratio or low
price to sales ratio. In addition,
looking for stock price volatility
and analyzing with Candlestick
analysis can be rewarding.
By: www.CandleStickForums.com
11. No matter what the fundamentals say
the wise investor will want a clear
image of what stock prices will do
next. Using technical analysis tools
such as Candlestick pattern formations
the investor as well as the day trader
can get a clear picture of whether
market trends will continue or if a
market reversal is around the corner.
By: www.CandleStickForums.com
12. Investing in earnings potential
starts with the fundamentals but
making the most advantageous
purchases and sales of stock often
comes from using Candlestick
trading tactics when picking best
time to buy stocks or sell stocks.
By: www.CandleStickForums.com
13. For successful investing in earnings
potential it is important to
understand the work of the
company whose stock you own.
There are any number of profitable
companies selling legacy products.
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14. These products are commonly
parts for older machines. Over
time there will be less and need for
the company’s products as its
clients buy new equipment.
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15. For successful investing in earnings
potential there needs to be the
prospect of continuing earnings
into the distant future. The other
side of the coin might be a bio tech
company who products only exist
as ideas in the R&D department.
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16. Although the next wonder drug
may be a multibillion dollar a year
product, getting it past the FDA
and onto the market can be
difficult in a world where one bad
side effect can torpedo a promising
drug.
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17. For both of these examples the
better choice may well be trading
with a shorter time horizon with
the help of Candlestick patterns.
By: www.CandleStickForums.com
18. By watching market sentiment take
a stock price up and down wise
traders can profit from the
speculations of others in all stocks
and all markets.
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