40% below intrisic value better or worse than 60%.....?
thx
2006-10-26 15:21:21 · 4 answers · asked by bush-deathgrip 1 in Business & Finance ➔ Investing
it is good
meaning that it is trading at a discount
it is like imagine u go to a store and buy a good for 100 bucks when it is worth 150 bucks
the market will adjust the price to its true value
sounds like a bargin to me
2006-10-26 21:07:31 · answer #1 · answered by ask me how 2 · 0⤊ 1⤋
That perhaps depends on how the intrinsic value was arrived at. If it was a figure that was pulled out of the air it probably means next to nothing. If on the other hand it is based on the book value of the company and the book value does not adequately reflect the value of real estate holdings, then if the stock is trading at 40% below that value it is likely to be bought out by someone in the near future.
If on the other hand the intrinsic value includes a hudge amount of intangable assets then there is a very good reason that the stock is trading below the intrinsic value.
2006-10-26 23:23:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes! It can be good or bad. Do your research. Invest in things you know and understand. Never (ever) use forums like this to help you make investment decisions. It's just plain stupid!
2006-10-26 22:25:09 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
.
YOU BET!!!!
SOUNDS LIKE A DOG WITH FLEAS!!!
DON'T BUY CALLS. SOUNDS LIKE A PUT OPTION TO ME.
BIG DOLLARS IN THE MACHINE
2006-10-26 22:24:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋