... such as GM, Ford, NT etc.
2007-02-10 13:11:54 · 7 answers · asked by oracle 5 in Business & Finance ➔ Investing
Yes, when I have a view of the long-term outlook for the company. A lot of research suggests that buying stocks when they are in the dumps is the most profitable strategy over the long-run.
Also, a good company doesn't always make a good stock (it could be an overvalued stock) and a bad company can make a good stock (when it is really really cheap and the company is turning around).
Finally, a company can lose money on an accounting basis at a given time and still be producing a ton of free cash. So losing money is necessarily a sign that thing are going bad.
I would do two things: (a) make sure you diversify among a number of stocks, and (b) do some research and convince yourself that a turnaround is likely.
2007-02-10 16:06:56 · answer #1 · answered by ANP1967 1 · 1⤊ 0⤋
Occasionally I buy a corporate bond of a company whose credit rating is suspect. Why? It pays more interest. And I can usually get them at a reasonable price. But you have to be careful or you can get burned real fast. I tend to stay away from the stocks. My one exception was Delta Air Lines. I bought a bunch when it went to 50 cents per share - just as a hunch. If they come out of bankruptcy, I may make some money.
2007-02-16 12:55:48 · answer #2 · answered by dmpeters_67 2 · 0⤊ 0⤋
I invest in such companies only my earnings,and i have a confident that company makes profit in future and its share value becomes high.
2007-02-14 02:22:43 · answer #3 · answered by sindhukannankattil 2 · 0⤊ 0⤋
I do, but only with money I can afford to lose, I keep it a very small percentage of my total investments, and usually with more of a small "start up" company who I believe has future potential, rather than one of the biggies you mentioned that are on the way down.
2007-02-10 21:22:13 · answer #4 · answered by gosh137 6 · 0⤊ 0⤋
Not every time but sometime i invest in non-profitable company as this company gives good return in market in long period, only when their is upward trend and also when their is good report of the company.As you said GM. i invested in tis company @ 9/- and now it is clear, need not to say. Best of luck.
2007-02-17 09:14:13 · answer #5 · answered by Prince 2 · 0⤊ 0⤋
unless you have a really GOOD reason for believing they are going to turn things around, or unless you want to LOSE money, then no, you don't.
2007-02-10 21:15:08 · answer #6 · answered by rainydaydreamr 4 · 0⤊ 0⤋
no
2007-02-10 21:15:12 · answer #7 · answered by keral 6 · 0⤊ 0⤋