At one time stocks did have what was known as a par value. That is an antiquated concept today. Bonds do have a face value. Normally $1000 per bond. But some do have other values such as $25. Preferred stocks have something similar to a face value know as the call value of the stock.
Companies do have an underlying asset value of the stocks kown as the book value. That is the total value of the assets of the company as they are carried on their books divided by the number of outstanding shares. Except for financial company such as a bank or insurance company the figure is rather meaningless however.
2006-10-06 03:58:55
·
answer #1
·
answered by Anonymous
·
1⤊
0⤋
1
2016-12-24 00:49:33
·
answer #2
·
answered by Anonymous
·
0⤊
0⤋
Are you talking about the company or the stock?
Or are you simply trying to assess the value of the stock using fundamental factors?
If you are a "Buy and Hope" investor, then eventually the price of the stock may match the fundamental value, but still tells you nothing about the direction of the stock price or timing. There are many other more primary considerations.
The fundamental concepts are good and give you something to compare against. But Enron and WorldCom both had a good looking set of books, that were approved by the SEC, right up until everything fell apart. We just need to be aware that there is not just one thing we need to be looking at.
The actual price of these stocks were more than cut in half before the first fundamental piece of evidence became apparent to the masses. And by the way, every broker on Wall Street was still recommending these stocks.
So to me, the Trend of the price action is more important than any piece of fundamental information. Regardless of fundamentals, why own a stock that is in a Downtrend, or in a steep dive, like the two examples here?
It is simply good money management to set a Protective Stop at some percentage of loss, say 20% or 25% of your investment. If a stock loses one-fourth of its value, I'm wrong about something and I'm out. We will find out why a few weeks or months later. To be protected is more important than anything we think we might know about the company.
Another area that many fail to consider is "market" risk. As of yesterday, we matched the historical all-time high in the Dow intraday at 11,721 set in Jan 2000. The last time we were here, stocks collapsed into the worst bear market since the Great Depression. Reaching the all-time historical high again may not be significant in itself, but merely points to the extended nature of this rally and increasing risk. To me, risk evaluation is more important than any set of company fundamentals. The name of the game is capital preservation, not how rich we can get.
There are always exceptions, but in general, no set of good fundamentals can withstand a "hard landing."
All recessions that have occurred since 1970 followed periods in which the Fed was actively tightening money. And all tightening cycles except two have produced a recession within at least two years after they ended.
A number of collapses and bankruptcies occurred in the wake of each tightening cycle.
-- Penn Central went bankrupt in 1970;
-- Franklin National Bank went bankrupt in 1974;
-- The Farm Belt and Latin American Debt crisis in 1982;
-- Drysdale Securities and Penn Square Bank collapsed in 1983;
-- Continental Illinois Bank went bankrupt in 1984;
-- Stock market crashed in 1987;
-- Savings & Loan crisis/real estate collapse/junk bond crisis in 1990;
-- Mexican Peso crisis/Orange County went bankrupt in 1994;
-- Asian currency crisis/Long Term Capital Management/Russian default in 1997;
-- Internet/telecom/ bubbles burst in 2000;
-- Stocks collapsed into worst bear market since the Great Depression in 2000.
All things considered, with the Dow making all-time new highs, the market has become extremely risky. Fundamental values of stock prices mean very little in a recession and a downtrend or collapse in the market.
2006-10-05 17:01:17
·
answer #3
·
answered by dredude52 6
·
0⤊
0⤋
I've made a nice profit on a couple of suggestions he's given and plan to start trading his ideas a lot more. I definitely recommend subscribing to https://tr.im/pennystocks
Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had.
2016-01-17 22:48:37
·
answer #4
·
answered by ? 3
·
0⤊
0⤋
Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/fb19f
2015-01-25 00:26:54
·
answer #5
·
answered by Anonymous
·
0⤊
0⤋
Hello,
I've been trading the market for just a few months. My cousin actually told me about this website ( http://pennystocks.toptips.org ) and I signed up immediately after. This is my honest review about their method. I'm not someone who has a lot of time to be researching for ideas because I work many hours. they made it incredibly easy for me to make money in the market. Their reports are easy to read and follow. I've tracked most of the stock ideas that I've received in my e-mail from them and MANY have seen some nice gains after their announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more.
For more info: http://pennystocks.toptips.org
Regards
2014-09-22 07:26:06
·
answer #6
·
answered by ? 2
·
0⤊
0⤋
How To Find Face Value
2017-02-28 10:14:25
·
answer #7
·
answered by tougas 4
·
0⤊
0⤋
face value? There is no such thing. I Think you are talking about book value...
you can get that from smartmoney.com or yahoo.com
2006-10-05 16:52:39
·
answer #8
·
answered by Anonymous
·
0⤊
0⤋