I became aware of contrarian investing before I started having my own business. It was my employer who explained the concept to me, and he told me how a great believer of this concept he is, and why. Although I was very new to the term, I have discovered...
After my recent post on the top 100 stocks with low P/E, I started wondering, if these stocks have such a low P/E, it means that they do not attract investors. But why is that?
I looked at two very known examples of stocks with low P/E: AIG and RIMM....
Buying at IPO is an almost guaranteed way to make money, especially if the company issuing the stock has a sterling reputation (many times you can make money even if the company issuing the stock is losing money!). But holding the stock for a while is a...
Before writing this post, I would like to stress the point that a good company does not necessarily mean that its stock is good, but a good stock is definitely the sign of a good company (PS: I don't think NFLX is a good stock).
Now what are the...
Now why would anyone in his sane mind enjoy a ringback in this day and age? It's a mystery to me (as well as to many, many others), but Rogers (you should really read the post, the author genuinely thinks that this so called feature is the best thing...
I have written about the LinkedIn IPO before, and I estimated that LinkedIn is worth anything between $1 billion and $10 billion. I also said that a range of $3 to $5 billion is more likely. I estimated the price of LinkedIn based on Facebook's valuation...
Before discussing the above topic, I think it is important to distinguish between a fiat currency and a commodity currency.
Fiat Currency
Let's first explain what the word "fiat" means (and no, it's not an Italian car and it is not an acronym for...
Stock investors are often regarded as self-centered, ego maniacs, couldn't care less about the world individuals. While some of them are like this, most are not. All the stock investors I know are humble, funny, and confident people. Stock investors are...
I have written before on fear and greed, and how their negative consequences on the stock trader by distorting his judgment and upsetting his disciplined approach to trading.
Fear and greed, are of course, sins in any investor's vocabulary. Patience,...
One of the factors that I use to buy stocks is their P/E Ratio (Price/Earnings Ratio). The P/E Ratio is calculated by dividing the share price by the EPS (Earnings Per Share). For example, in the case of RIG, the P/E Ratio = Share Price/EPS = 73.10/2.97 =...