QUOTE(SKY 1809 @ Dec 20 2014, 10:51 PM)
So u see U contradict yourself with the opening statement of Low Price....earlier 
" Financial analysis should be able to discover the cyclic low price"
" 1) Buy low. Prevent being trapped in your first buy."
An undervalued stock does not mean it is LOW Price.....it is the " Worth" of the money u pay for.....
A Simple example is u pay rm one for the share..then your analysis shows the stock is worth rm 5..per share ...so in simple term it is undervalued..
Buy low =/= buy undervalue . " Financial analysis should be able to discover the cyclic low price"
" 1) Buy low. Prevent being trapped in your first buy."
An undervalued stock does not mean it is LOW Price.....it is the " Worth" of the money u pay for.....
A Simple example is u pay rm one for the share..then your analysis shows the stock is worth rm 5..per share ...so in simple term it is undervalued..
Cost of a product manufactured in bulk at RM 1.00. Retail customer buy at RM 1.20. Supplier A buy at RM 0.90 and supplier B buy at RM 0.80. Both A and B buy undervalued product. A expects profit RM 0.30 and B expects profit RM 0.40. B buy low.
Manufacturer sell to transfer the responsibilities to buyer and to complete the investment.
B can sell to A and retail customer to get profit.
A can sell to retail customer and compete with B.
C, D, E, F coming in .......
Manufacturer may cheat. Cost is RM 0.70.
Manufacturer has pressure to hold product and must create a buy good environment.
Buyer decides 'timing' to buy or not to buy based on scientific judgment (fact, figures, experiences, news, comparison etc).
Dec 21 2014, 12:05 PM

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