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Cheap Stocks

Cheap or expensive is relatively a very subjective term similar to rich and poor. You maybe poor in one country and rich in another in comparision. Likewise, the  pxs of stocks maybe cheap compare to some and maybe expensive otherwise. Therefore, to be fair to the stock concerned, it has to be an apple2apple comparision - it is very time consuming to do so!

I don't believe there is such a thing as 'cheap' stocks. If so, The Market must surely be a Fool not to spot it. If The Market didn't spot it, there must be a reason and that reason is good enough to 'kill' that stock. Thus, even with all the good fundamentals, a 'cheap' stock will still remain as cheap or even cheaper if The Market shows no interest. Therefore if you've spotted one and if you've the guts and patience to buy and wait for The Market to agree with your judgement... voila! you've got yourself a REAL GEM! cheers! 

 

It is common sense that if the big boys want  to play a stock, they won't choose a "koyak" stock in the first place.... :)

 

If u ask me I would say Electrotech and Global Testing are good undervalued companies with P/BV around 1 and with upcoming expected cyclical tech uptrend they are worthwhile considering..utac is another..

 

IMHO agood undervalued stock will be one which is preferably cash rich and has great growth potential and proven earnings with excellent management..so choose wisely..

 

but to choose good undervalued stocks u have to look at the fundamentals too..ie PE ratio amongst many to put briefly..

 

undervalued stocks are priced below their NAV or book price to put it crudely..there are of coz other definitions ie with respect to growth etc etc..

 

theres a difference between cheap and undervalued..mebe undervalued is better understood..

 

FerroChina and CHT are cheap stocks

 

ok, thanks. so how abt china haida n starcruise?

 

winall,

I think one of the biggest fallacy of new investors is their perception that the lower the stock price, the cheaper it is.

Perhaps you should consider looking at the "Value" of the stock. In this, you need to consider things like NAV (Net Asset Value) per share, EPS (Earnings per share) against the share price.......amongst other things.

Hence, if you compare:

•  a 5cts stock with NAV of 1cts and loss making 

to a stock that is

• $10.00 but with NAV of $8.00 and EPS of $1.00.

Whilst the latter ($10.00 stock) is more 'expensive', but don't you think is is a better 'Value' stock than the 5cts stock?

For me, I would rather invest in the $10.00 stock than the 5cts stock.

Think about it.

 

thanks for the advice. i m a noobie. whats ta fa, etc? becos my budget is low n wanna try buying stocks

 

Agree... somehow it seems that I always seem to lose money when I buy penny stocks.

 

Cheap stocks (ie. penny stocks) can actually be more dangerous than higher price stocks because of the invariable leverage involved when you buy many more lots (thus making it no more 'cheap') than you otherwise would. Because of this, small price swings up or down are magnified accordingly and you stand to lose more drastically if the swing is against you. The lower the price of a stock the greater is such built in 'leverage'.

 

Hi winall, any time frame to hold or sell and what is your "budget" like? And do you prefer TA, FA or GA?

 

Hi winall, if u are a beginer, please do not  attract by the cheap stock. unless u hv an expert TA or FA person to guide u.otherwise changes of money loss or lock up by the cheap stock is high.

 

hey, got any cheap stocks to recommend? any opinion on china haida n starcruise?