The best way for me to explain this is to take 2 companies in the same sector (one that you own, and the other that you wish to buy or etc.). I'd advise you to make a pro's and cons list for each company. If there are more pros and cons for the company you own, i would hold or add to that position, but if your company that you are looking to buy into has a greater amount of pros than ur original position, than I would definitely be a buyer. I would look at the pros and cons based on the P/E of a company, the earnings and revenue growth, the margins, cash flow, balance sheet, and most importantly...its value verses its competitors.
You also asked the time of the day that these trades should be done. I would advise a limit order to sell then after that executes to then put in an additional limit order to buy into the second company. If by chance you don't have a great deal of time on your hands to look at the trading screen....then these are your best friend. You may also want to consider a market-on-close order for your stocks, if you don't have that much time on your hands. Either way, the timing of the trade depends on how much time you have to pay attention to the trading screen. Just remember---Good things come to those who are patient!
I also would like to add that the theory of "buy low, sell high" doesn't nessissarily work in all enviroments. Sometimes there are days when the market's safety net has failed...and it looks like a free fall....there are days when the rocket fuel in the spaceship is thrusting on 8 cylinders. I tend not to pay attention to the times when there are buy low and sell high anyalists out there that try to scare people out of a stock. I pay attention to a percentage gain for a stock, and it has done very well for me in the past. In fact, If you take a look at HANS...I bought in at a non split adjusted 100 a share, then watched it go to 189, and then sold there.....that was a percentage gain of nearly 90%. I clearly remeber talking to the people on the message board that said the stock had topped out at 140. How wrong they were then. I hope all this helps.
Happy Trading
-Paul
2006-08-07 09:12:17
·
answer #1
·
answered by greenglow560 4
·
0⤊
0⤋
It depends if the buyout is adverse or agreed upon. It if is agreed upon the shareholders of both organizations vote on the merger. The terms for the payment are laid out. It might be an all money deal. It possibly an alternate of stock (dilutive to present shareholders) based on a ratio or it perhaps a mixture of shares and money. If the deal is permitted by both sides, the shareholders of the got enterprise flip of their shares and acquire new shares and/or cash within the acquiring corporation. In a hostile bid, the obtaining organization buys up as many shares as feasible to take a look at to acquire a controlling curiosity. They then do a soft present and ask the present holders to tender their shares for cash at a top class to the market. If they get sufficient shares tendered, they attempt to control the manufacturer and seek a seat (or seats) on the board. A hostile deal can drag on for months, sometimes years.
2016-08-09 10:39:28
·
answer #2
·
answered by ? 2
·
0⤊
0⤋
Okay, wow...
How about a theory...only a theory.
Look for the stock price to stall on an upward movement and when it does, look for a couple of things to tell you whether to sell or not.
First, have the MACD in front of you. If the two lines are not coming together, hold it. Going apart, get ready for a breakout. If they are about to touch each other, consider selling it.
Confirm this with the volume level. If the selling is going on with higher volume, it means people are bailing out. If there is selling going on with lower than average volume, hold it. This is a sign called consolidation and it is a very good thing.
Always look for more than one sign to make a decision. Either way, the decisions are: buy it, hold it, sell it. You have to decide for yourself. Don't be afraid to be wrong. We all learn from our mistakes and are much less likely to do it again.
Best of luck to you!
2006-08-07 18:22:48
·
answer #3
·
answered by Anonymous
·
0⤊
0⤋
It relies if the buyout is opposed or agreed upon. It if is agreed upon the shareholders of each organizations vote at the merger. The phrases for the cost are laid out. It possibly an all coins deal. It possibly an trade of inventory (dilutive to present shareholders) established on a ratio or it possibly a mixture of stocks and coins. If the deal is authorised via all sides, the shareholders of the got enterprise flip of their stocks and obtain new stocks and/or coins within the obtaining enterprise. In a opposed bid, the obtaining enterprise buys up as many stocks as viable to take a look at to attain a controlling curiosity. They then do a delicate present and ask the present holders to delicate their stocks for coins at a top class to the marketplace. If they get adequate stocks tendered, they try to manipulate the enterprise and search a seat (or seats) at the board. A opposed deal can drag on for months, normally years.
2016-08-28 11:19:14
·
answer #4
·
answered by ? 4
·
0⤊
0⤋
It is dependent if the buyout is adversarial or agreed upon. It if is agreed upon the shareholders of each firms vote at the merger. The phrases for the cost are laid out. It possibly an all coins deal. It possibly an trade of inventory (dilutive to present shareholders) established on a ratio or it possibly a mixture of stocks and coins. If the deal is accepted via all sides, the shareholders of the bought corporation flip of their stocks and acquire new stocks and/or coins within the obtaining corporation. In a adversarial bid, the obtaining corporation buys up as many stocks as viable to check out to reap a controlling curiosity. They then do a delicate present and ask the present holders to delicate their stocks for coins at a top rate to the marketplace. If they get sufficient stocks tendered, they try to manage the corporation and search a seat (or seats) at the board. A adversarial deal can drag on for months, normally years.
2016-08-20 23:55:07
·
answer #5
·
answered by ? 4
·
0⤊
0⤋
Buy when the price is low and sell when the price is high just about sums it up you just have to keep an eye on the market and when you think it is as low as its gonna getbuy and the sasme with selling sell when you think it is gonna start falling again
2006-08-07 08:51:14
·
answer #6
·
answered by Shannon T 2
·
0⤊
1⤋
Unanswerable question. If company business going well the market may be knocking it down for no reason & may be time to buy more vs sell. There is no "best time" to make an empty-headed decision,. Research!
2006-08-07 09:31:19
·
answer #7
·
answered by vegas_iwish 5
·
0⤊
1⤋
never buy at the price you see always set a limit order, stock price is 4 dollars .limit order for$ 3.87 the price will get there it fluctuates all the time @ 387 your order goes through,same when selling pick a higher Price,
2006-08-07 09:34:08
·
answer #8
·
answered by har 3
·
0⤊
0⤋
Buy low, sell high.
2006-08-07 08:49:47
·
answer #9
·
answered by Ranto 7
·
0⤊
1⤋
buy low when the stock is cheap
sell high when the stock price per share is high
duuhhhduhhhduhhhhhhhhhh
2006-08-07 08:53:33
·
answer #10
·
answered by tyler_durden_project 5
·
0⤊
1⤋