Well, I wasn't being honest with you cintrix. I wanted to keep this out of discussion, though I will explain. Soon will be the first stock I personally choose to invest in. I have only bought and sold one stock, which a friend recommended me. I was naive investor at the time. I bought into it with no clue about the business. When I wanted to learn more about not only the company, but the market itself. He told me not to worry and that I'll make a great return with the stock. We no longer communicated, more on his part. As to why, I don't know. Though an already long story short. I didn't know what an exit strategy was and sat on it longer then I should have. In the end I lost 80%. I do understand your first paragraph about blind investing. I learned my lesson, I'm putting it behind me and starting fresh on my own.
I would eventually like to learn all of the different strategies of investing. Though I'm a broke 21 year old college student, who isn't giving up on the market after my past experience. I barely have enough left where I'm forced to buy stock from one company, I can't diversify. At this point in time, I feel value investing is the best choice. It's basic, most simple for me at this point and it seems to hold the least amount risk of any other strategies.
I do have questions regarding the links you provided...
1.) When it comes to calculating book value or net current assets per share. One of the numbers needed is liabilities. Should I include shareholder's equity into the liabilities?
2.) Since book value is an inverse of earnings yield, is it important to look at earnings yield when comparing stocks or vise versa? Since their both coming from the same numbers.
3.) This question goes along with the question above. Net current assets per share seems to also be the inverse of book value?
I believe that's all the questions I have for now.
I thought I would buy a stock a few days after selling the first stock I held. Though I'm glad you're here to help with what you can. I feel more confident and I'm not even sure if I want to buy in next week. I want to come up with an exit strategy before making a move.
Once again, thank-you very much for replying cintrix,
Gulley
AI
