Apple Stocks Prices
telling if stocks are worth buying?
im still a beginner so please bear with my questions.
1) how do i know if a stock price is low?
i recently bought a 50,000 stocks from apple inc. they were down by .20% so i bought 50,000 so that i can sell it when it goes up again.
Ok here is what you do. Fundamentals play do play a significant role in telling if a stock is cheap (P/E ratio is high = expensive stock typically) but you need to do the technical analysis. What you do, is look at the price/volume chart for apple. If the price has gone down but the volume remained unchanged or went down, that means that you are ok. The big investors that drive apples stock have faith in it still and the pros expect long term gains. HOWEVER, if you see that the price has gone and the volume went UP, this means the big institutions like mutual funds etc. dumped their holding and odds are, the stock isnt going to be performing. But since you just bought, you need to take into consideration the current market situation. Apple is a strong company, ROE is above average, annual earnings are accelerating and the only reason apple has really decreased lately is because the overall market is bearish. Intel’s earnings beat down the nasdaq. When this economy starts to turn around and the market shakes off this trouble, Apple will be one of the first stocks off running up. Stay with apple
Chuck Hughes: Buy Apple