Actually I am an idiot !!Originally posted by bbarnhart
I thought I'd ask.
Stock price is based on many factors including revenue, net income and perceived value. I'll leave it to you to do the math.
Buy on rumors, sell on news most definately does not work. I've tried pretty much every single type of investing there is, and I find that the only way to consistenly make profits is to become a value investor. With that said, Apple is a pretty good value right now. I can see Apple gracing the $18-20 mark a year from now.Originally posted by zarathustra
The rule of thumb for the stock market regarding companies is:
"Buy on rumors, sell on news." Just give it a shot. Watch respectable news sources rumor a new product from a company, the stock will go up a bit, or a lot, but after the official press release, the price usually deflates for a few days.
Besides the obvious downturn in economy, the whole Enron, Worldcom, Kmart, US Airways, etc fiaskos did not help a bit. For the younger crowd, this is called a bear market, and can last a few months or even years. It will correct itself - do not worry.
In Economics 101 they teach you that every upward movement in GNP (also the stockmarket and other inidcators) is followed by a downturn. The higher the peak, the lower the bottom. That's it. The government has been trying too long to keep the economy going up, and they have succeeded for a while, but now it's just time to wait it out.
Our economy (US) is regulated in a very simplistic way by adding or taking away cash from the marketplace. There is people and companies with serious money waiting for the market to bottom out, so they can start buying cheap. Up until now any positive turnaround has been stifled by some scandal or war efforts. Very unfortunate, but a merely historical anecdote in the long run.
yeah.. the "buy on rumors sell on news" idea is definately not the way to go..Originally posted by topicolo
Buy on rumors, sell on news most definately does not work. I've tried pretty much every single type of investing there is, and I find that the only way to consistenly make profits is to become a value investor. With that said, Apple is a pretty good value right now. I can see Apple gracing the $18-20 mark a year from now.
Still, this recent bear market has a very good possibility of dragging on for another couple of years, kinda like the 14 years or so after the great depression (well, maybe not that bad, but another 2-7 years is conceivable because of the gentle declines we've seen so far).
When compared to other world markets, the US market is actually a little overvalued. I just hope the US doesn't follow Japan and go into a decade-long downward spiral.
It's not an idea, it's a theory - do not think of it as an instruction, rather than an observation, as in: "Short term investors tend to buy on rumors and sell on news, before the reality sets in." I don't live by it, but I do encourage to look at other companies and their stock prices at rumors vs. news reports. I have seen it happen quite often.Originally posted by firewire2001
yeah.. the "buy on rumors sell on news" idea is definately not the way to go..