If you're in doubt about the quality of a company as an investment, abandon the study and look for another candidate.
When in doubt, throw it out.
Abandon your study and go on to another. There is no price low enough to make a poor quality company a good investment.
The worse a company performs, the better value its stock will appear to be.
Because declining fundamentals will prompt a company's shareholders to sell, the price will decline. This will cause all the value indicators to show that the price has become a bargain. It's not!
When the stock is selling at a price below that for which it has customarily sold, you will want to check to see why - what current investors know that you don't.
When in doubt, throw it out.
Abandon your study and go on to another. There is no price low enough to make a poor quality company a good investment.
The worse a company performs, the better value its stock will appear to be.
Because declining fundamentals will prompt a company's shareholders to sell, the price will decline. This will cause all the value indicators to show that the price has become a bargain. It's not!
When the stock is selling at a price below that for which it has customarily sold, you will want to check to see why - what current investors know that you don't.
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