I am very new to this, but currently I look at 50/200 day moving average, as well as one year target estimate.
What statistics do I need to look at before I buy a stock?
It is better to learn how to read financial statements, and then pick about 10-12 solid stocks to eliminate non-market risk.
Reply:Personally I recommend buying mutual funds or exchange traded funds unless you really have a lot of time to do investment research and enjoy doing it.
Personally I look at the PE of a stock (which is really the 'price' of the stock; its the number that tells you what your getting for what your paying. Then I try to estimate if the company is likely to grow/shrink/stay relatively still in the future. This means scrutinizing annual reports, news items, etc. I also pay attention to how much cash and how much debt a company has, look at its return on equity (which indicates how efficient the company is) try to determine if the number is historically representative of the company.
Again if you pick individual stocks you'll want to do a lot of research. It's probably easier to just invest in S%26amp;P 500 ETFs like the SPDR (SPY) and the iShares (IVV). Unless of course you enjoy it.
Reply:You need to look at EPS, the amount of Debt the company has, P/E Ratio, market cap, dividend yield, and the company's growth propsects and management team.
Another way to look at it is, how cheap is the stock compared to it's prospects for growth.
I would not just look blindly at the numbers to buy. Intangibles such as management and industry strength mean more.
Reply:Do not do it.
Put your money in a CD and
Get a good job.
Reply:I don't mean to offend anyone, but P/E is a really useless ratio. Statistics you should look at are EV, FCF, and ROIC. Beyond that, its a matter of judgment and preference.
The reasons I prefer EV/FCF over P/E are detailed (with examples) at http://www.valuestockreports.com/030407....
If you need help with your calculations, feel free to email me at research@valuestockreports.com
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