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lowtrade, I need to understand the CANSLIM investment strategy. You were very helpful when teaching me value investing, which is why I have returned for more knowledge. Though if you recommend me another board or member to seek guidance with, please let me know.
I understand the "C", but was quickly puzzled when understanding the "A". A – Annual earnings increases at a compound rate of no less than 25% (P/E is unimportant – probably in the range of 20 to 45 with these stocks) annually over the last five years.
First, I can't find a website that has EPS data, dating longer than 5 years. Is there a website that you recommend using for this?
Compound interest rate, I don't understand. I looked up the definition to this term, but to no avail.
P/E ratio is important or not? I feel it's somewhat important if they bothered adding this to the strategy. What is your advice on this?
Thanks, Gulley
cintrix, I will do the best I can to learn this strategy via internet. I would enjoy reading the book itself, but can't do so at this time.
MBAMann, it took me a few posts to realize that you have an MBA. Again, sorry if I'm a bit on edge. I'm trying to quit smoking. I know for accounting, that penny stocks and TA won't be a topic. Though I know I will learn a bit more about the broader market.
cintrix, this seems like a great strategy. Sorry if I seem a bit on edge, I'm trying to quit smoking. I will probably pick your brain on this subject, like I did with value investing if you don't mind. I believe this strategy will be easier to understand. I'm curious, I know investors/traders use hybrids of strategies. Though do some use both separately?
MBAMann, I do have some hands on experience with value investing. I think I'm not getting my point across correctly, which is fine. I will follow the link you provided and move on.
Thanks, Gulley
cintrix, no not overload. I just think learning TA itself is too complex of a subject to learn in my free time while in college. I would be open to learn other types of trading/investing strategies. You helped me learn about value investing, which I enjoy. Though I would like to expand on other investing styles and practice them on a stock simulator. Which would give me some experience. I have a feeling you're not understanding me... If not its fine, someone below provided the link. I don't expect what I learn to put me ahead of anyone while in school or at a better chance for a career. This is what I love doing...
cintrix, even if I'm going to school for business finance and a minor in economics? The financial market will become my career in the future. So it's not necessarily too far from my studies.
New board.
New board.
New board.
New board.
cintrix, I wanted to give you an update. As of lately, I haven't been able to learn more about TA. I have been busy with school, and I have not had a chance to continue reading the book you recommended. Before school I wasn't able to put the book down and got about a third of the way though the book. I am afraid I should put the learning of TA on hold for the time being. With my horrible comprehension I find when I do pick the book up, I am lost. I do hope to continue one day, but at this time I feel it's unproductive. I think I will try to learn something else that is not as complex at this time, that I can learn about and pick up after a few days or weekends. In short, TA is just too complex to learn during college studies. I think until then, I would like to gain knowledge of growth investing. I feel this would be not as complex, I could pick up from where I left off from time to time and would involve research on the Internet. Which is easier than reading a book. When you helped me understand value investing, you gave me an Investopedia link that was very helpful. I have tried to find a link that explains growth investing in an easy to understand manner. Do you have a link to such?
RobinT, thank-you! I'm currently searching for undervalued foreign equities. The brokerage company I use has a diversification model, I chose an aggressive strategy. Being a young investor, I noticed that a significant amount of my portfolio should be holding international equities. I'm not ready to make this change in my portfolio at this time, but I wanted to get a head start. I'm currently finding these equities and adding them to my watch list. I need to understand how to read foreign SEC filings before I make this change. I find them difficult to understand.
When you form an opinion, please share once you come to a conclusion. I would be interested to see what you find. It is always important to be weary of investments that are undervalued by a significant amount such as Korea Electric Power Corp. (KEP). Even more reason to be weary is that this company is foreign. Extra steps must be taken to downsize your risk. Though I believe if due diligence leads you to invest here, then this could be a great investment.
S&P Capital IQ just upgraded they're rating to 4 stars. If you can get ahold of the report, it's an interesting read. Scottrade offers it on their website.
RobinT, what do you think about Korea Electric Power Corp. (KEP)? Just from a quick glance, it seems very undervalued.
New board.
New board.
RobinT, Korea Electric Power Corporation is a Korea-based company engaged in the generation, transmission and distribution of electricity and development of electric power resources. The Company and its subsidiaries are mainly engaged in four business segments: electricity sales segment, nuclear power segment, thermal power segment and other business segment. Its electricity sales segment mainly engages in the development and sale of power resources. Its nuclear power segment consists of nuclear and pumping-up power generation businesses. Its thermal power segment consists of bituminous, anthracite, liquefied natural gas and other power generation businesses. Its other business segment engages in the design and maintenance of power facilities, processing of nuclear fuels and provision of power information technology (IT) services and others.
http://cyber.kepco.co.kr/kepco/main.do
KING_TRADER$, thank-you for sharing. Wonderful post.
To theTop, possible, but highly unlikely. I know this response is starting to sound old. Though I believe personally, that there is still much more time to get a position here with Bank of America (BAC). I think a good entrance would be anytime between now and January-March. It irritates me when others exclaim "now or never" "the train has left the station" or some other nonsense. If you happen to get more funds or sell (a) position(s), I would believe you still have time. As I stated before, there is still a tremendous amount of undervalued book value. I see this as long term position. The great thing I like about BAC here, is that the dividend yield has increased and will match other large banks in the long run. This value stock could turn from a value stock into a growth stock. I hope you keep a watchful eye on BAC and I also hope you come back to post on BAC's board from time to time.
I don't say good luck to others here on IHub, but good luck, Gulley
FUNMAN818, I often think about how this lawsuit will chage the PPS of Bank of America (BAC). It seems each time I come to a conclusion, I have a different opinion. There are simply too many factors that could cause a certain outcome. I have even looked back at past lawsuits against BAC to see how the PPS was affected. This only made it more difficult for me to reach a conclusion. As much as I enjoy giving my opinion here on BAC's board or IHub in general, I wouldn't feel comfortable stating what I believe the PPS outcome would be. Only what I believe the outcome could be.
However, I do believe this current lawsuit is built in to the current PPS. Shareholders have known since the acquisition of Country Wide, that there would legal trouble to follow. Even more, this current long drawn out lawsuit has made itself known. Besides the debt burden of Country Wide that BAC carries, these legal liabilities have played a factor entirely. In fact, I believe that Country Wide's legal liability is a larger factor that has kept BAC's PPS down, more so then the debt. Why you ask? Because we know the debt that Country Wide has. We could predict when that debt could one day be no more, based on the rate BAC has cut that debt. Though we can't accurately predict the legal liability that Country Wide has or for how long.
There are points that I would feel comfortable predicting at this time. I believe a possible pop or drop are equal. Remember, buy on fear, sell on greed. Most investors/traders do the opposite, so a drop is possible. Pop is also possible because this event is built into the PPS, I believe. When the verdict is reached also will play a role. With earnings being released in October, this could exaggerate the PPS change from the verdict. If earnings are not met after or before verdict, this could spell mass sell-off. Though this would be short term of course, which the initial PPS before the drop could return before 3 months. If earnings are met/beaten, this could raise a substantial amount. I have a feeling BAC wants to reach a settlement before next earnings are released.
This goes without saying, earnings should be beaten this past quarter. Many aggressive cost cutting strategies and debt reduction have been put into place, respectively and that method was proved during the second quarter. Banks are weary, giving weak estimates with an equal amount of buy, hold and sell reports. Though this is a different topic for a different post. Though one thing is for certain, we can expect extreme volatility in the next coming months. If you're here for value, there is nothing to be concerned. It's important to reiterate for those experienced or beginners here. Be sure to have necessary strategies in place, both entry and exit. Don't let emotions change your decision.
To theTop, I believe we all have moves that we should have made in the past, but failed to execute. Though here with Bank of America (BAC), it's not too late. BAC is still roughly 49% undervalued. This is not including growth once BAC reaches book value. There is still plenty of room to make money here with BAC. I hope you reconsider and don't focus on the profit you could have made, but the profit you can still make.
Correction, I said JPMorgan Chase (JPM). It already is a Dow stock.
trunkmonk, the criteria for a company to get on the Dow is vague. The PPS of a company isn't deciding factor of weather it should be on the Dow or not. I agree, it is a shame that we were replaced by another financial company. The bright side, it's not as bad as being replaced by JPMorgan Chase (JPM) or Citigroup (C), which is Bank of America's (BAC) closest competitors.
MisterEC, that is correct.
KING_TRADER$, I'm not knowledgable about the legal subject. Which is why I enjoy hearing input and gaining more understanding from others who hold a position here. From what I do know, I believe the odds against this case being thrown out are not as bad as what some may believe. It seems some give Bank of America (BAC) less then a 5%-10% chance of the case being thrown out. If so, can American International Group (AIG)/investors come back with another lawsuit? If this is true, then it might be in BAC's best interests to make an agreement and move on. What I don't understand is the subject of bankruptcy for Country Wide. If BAC were to take this route, is Country Wide no longer a liability? Meaning BAC could no longer be involved in a lawsuit regarding County Wide?
crowbar24382, correct, but incorrect. Bank of America (BAC) is DJIA until close this Friday Sept. 20th.
Pennyhunt, you are entitled to your own opinion, but can you provide more than "sell sell sell"?
Stanner, I found Marrone Bio Innovations (MBII) on www.NASDAQ.com in the "Latest IPOs" section. I made a board for MBII as "just cause". I'm currently only use one investment strategy, which is value investing. To a value investor such as myself, this stock looks unattractive. Besides being overvalued, I see a negative profit margin and debt. (Dilution)? I do notice growth, it seems progress is being made. I say this all, without looking at the financials and deep digging. This analysis, was simply just a quick glance. Possible further research could show more as to why they are not profitable and more on their debt situation.
Responding to your latest post. I do believe this is a high float for a company that is newly public. I'm not knowledge enough to comment further regarding their share structure and to what this means.
What do you think about MBII? You seem more knowledgeable then myself.
trunkmonk, I believe Bank of America (BAC) is very capable of this PPS in the long term timeframe.
KING_TRADER$, thank-you. I noticed two people who commented on housingwire's link said the judge plans to reach a verdict in a month. No proof of that quote from the judge was provided from either who commented on that article. You are correct, generally unpredictable. So it seems the odds are against Bank of America (BAC). I'm curious of your opinion, how do you believe this case will pan out?
KING_TRADER$, great news! I can't find any articles regarding this information? Do you have the link available?
fatmike, I see your attempting to pump this stock, seeing that your posting this message on every bank board.
BaylorTradeKing, congratulations! Thanks for understanding.
MisterEC, are they not required to disclose their holdings? In regards to Mr. Buffett, I would assume at his age that he goes to bed before dusk, haha! I believe you are correct on that note!
Bank of America (BAC) moderators, I believe the BAC iBox is rather boring. I have decided to enhance the appearance with some changes. I have already made some a few changes, but hope to add more content soon. If you disagree with any items or have an idea of your own, your opinion would be much appreciated.
Thanks, Gulley
KING_TRADER$, I am unable to find what politicians own Bank of America (BAC). Do you know this piece of information? I remember someone mentioning that many politicians hold shares here with BAC.
MisterEC, or what if Warren Buffett was one of us? Mr. Buffett could be a master in disguise!
fatmike, I'm doubt he's interested based on these words that he said...
TREND1, you don't believe Tesla (TSLA) would want to profit of charging stations? I think it would be another great revenue stream. Change by the kWh plus a few cents for a profit. Sounds like they have the charing method as leverage.
TREND1, thank-you very much for educating me about Tesla (TSLA). As well as changing some of my views and opinions on electric transportation in a positive manner. I will conduct some research when I find the time, as I believe there is much more potential here (both company and PPS grown) after doing just a few minutes of due diligence. Once again, thank-you.