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Tinker2387

09/08/11 12:15 AM

#1835 RE: steamoil #1833

were talking market value as investors, hence the name investors hub

bruce4653

09/08/11 8:38 AM

#1838 RE: steamoil #1833

I hate to bust your bubble, but the stock price has little to do with establishing the value of a company. Example after example exist if you open your eyes.
Take Regions Financial Bank. In late July the stock traded at over $6 share. In less than 30 days you could buy shares for under $4 share. The company must have lost over one-third of it's business (profit) whatever???? Not! Back in the spring of 2009 Bank of America went from $3/share on 3/6/09 to $7.67/share on 3/18/09. That means BOA "value increased over 2.5 times in 12 days!!!! Hardly! A stock's value has more to do with speculating how the "stock" will be valued in the future, not actual balance sheet results. Balance sheet results are just one criteria for establishing the price of a stock.
Facts, facts facts, facts are what is what matters. Here's something else to ponder. Each stock has a "group" of investors/speculators that trade and follow that particular stock. Once you learn how that group reacts to various events and information you can begin to understand if the "group" is more likely to buy or sell the stock. That is one way you can make money day-trading.