Rinker has droped dramatically ~~". And it's target price for this year somewhere $80. Now share price has gone to somewhere $50. The company still has strong finance and maybe FED not going to raise interest again. I think I will be probably recover. Do you think so?
2006-07-21 14:58:23 · 3 answers · asked by (^^meoden1005^^) 2 in Business & Finance ➔ Investing
This is the wrong way to look at investing. Imagine instead that you know when you need the money from these shares, say ten years. And imagine the stock drops the day after your bought it and remains there for 9.9 of the 10 years at which time it moves to "fair discounted present value."
What will that value be and what return would that give you over the time period? If that is acceptable, buy the shares.
The Yahoo data is not the best for this because it is a foreign stock. It will require extensive investigation to determine its suitability as an investment.
On the surface, I don't see anything wrong with it, but you need to look out not 1 quarter for the next Fed meeting but rather 40 quarters.
Ignore target prices, they are a silly concept that implies someone has a crystal ball.
My back of the envelope caclulations would put it near "fair value" today. Of course the goal is to buy low, so you probably want to hope it collapses so you can buy it below fair value.
Personally, I won't investigate it because I never pay a fair price for anything and this price looks reasonable given very light investigation. It may be low given its peers, but it is also possible its peers are high.
2006-07-21 15:08:46 · answer #1 · answered by OPM 7 · 0⤊ 0⤋
No. The charts say that the stock has bolted up over the last three years and has recently completed a bump and run formation. The problem with their completion of the bump and run is that instead of retracing fifty or sixty-two percent of their "bump," they have already retraced 100% of it!
The next step down for them is a doosy, as there is very little support for the stock until it reaches about $44/share.
I see the stock continuing to slide to that level at least. The support in that level is also quite sparse. Once it reaches $44, watch it to see if it retains the level and starts to move back up. It could take over a solid week to ten days to be sure. If it holds there, buy it.
If it doesn't, expect the stock to hit the bottom at around $26, then buy it.
Best of luck to you!
2006-07-21 18:06:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I would'nt buy, the whole housing sector is slowing and any way
RIN just made a new 52 week low. Dont be surprise if you see that $80.00 target change too.
2006-07-21 15:12:55 · answer #3 · answered by Grandpa Shark 7 · 0⤊ 0⤋