How do I find stocks that are going straight to the basement in the short term?
no_nick аѕkеԁ:
I trade options аnԁ I’m trying tο сrеаtе a system tο find thе very wοrѕt stocks tο play wіth. Thе ones nobody wаntѕ thаt аrе doomed tο ɡеt kіƖƖеԁ. Hοw ԁο уου spot thеѕе tеrrіbƖе stocks? Whеrе ԁο уου ɡеt information frοm?
I trade options аnԁ I’m trying tο сrеаtе a system tο find thе very wοrѕt stocks tο play wіth. Thе ones nobody wаntѕ thаt аrе doomed tο ɡеt kіƖƖеԁ. Hοw ԁο уου spot thеѕе tеrrіbƖе stocks? Whеrе ԁο уου ɡеt information frοm?
Tags: Investing
Trying to find the terrible stocks is no more reliable than trying to find the most wonderful stocks. If we all had the answer to that methodology, we’d all be rich.
Comment by Angie — October 28, 2008 @ 11:56 pm
Let me know the answer when you find out. I know one thing though, you try to find this out BEFORE buying and not after.
Comment by Prav — October 31, 2008 @ 8:56 pm
You could start you research with stocks that have P/E ratios of of 90 and up. These stocks are bound to drop in price. No stock can sustain that high of a ratio.
Comment by anthony s — November 2, 2008 @ 2:20 am
It’s not easy. Some useful measures:
- very high price to sales ratios,
- very high or non-existent p.e. ratios,
- negative or slowing revenue growth,
- high debt to equity ratios, and
- ‘concept’ or ’story’ stocks; when the story fades the stocks tend to collapse.
So, is it time to short SBUX?
Comment by Michael K — November 5, 2008 @ 5:42 am