what are good companies to purchase stock from?

Question

What are some good companies to purchase their stock ? What's the symbol of the company and what's its field of business? Thank u

Answer 1

I see that you are about to do something that you will regret for a very long time here. Asking for FREE, Off-the-street advise is a highway to disaster and is something every beginner MUST avoid! If success in the stock market is as easy as posting a question like this here, why are so many people still poor??

There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/ )

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.


All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.


http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

.

Answer 2

Be very careful of asking these questions. The market is highly speculative, and you will receive answers for investment in companies by people that have little knowledge of the market, people that entered the bandwagon, people that have a biased view towards their investments, etc. People like to talk, usually about things they know little about, and this is particularly obvious with questions like yours.

Here is my suggestion for you. Pick a company that has a solid track record over a significant amount of time. Some companies are stronger than others, and less likely to be vulnerable to speculative bubbles and/or mismanagement. Naturally Enron and WorldCom proved this to be wrong, but for the most part it can be true.

Once you have a list of companies in the industry you have some knowledge about, do some research in the company. Warren Buffett, for example, will only invest in companies in industries that he understands, and has done very well from that methodology. For investment, after your research, do some stock valuation research. You do not want to buy stock that is overpriced.

If the company pays constant dividents, you need to do a present value (PV) analysis of the future dividends to get the value of stock for the time of your investment. To do this, just discount the future dividents to the present. You should also consider the value of the firm, you want to invest in a firm that increases in value over time, so their future stock is worth more than the present stock, and you can offset your investment position for greater returns. The value of the company is calculated as the sum of the free cash flows on the company each year divided by the working average cost of capital per each year. If these terms are unfamiliar to you, get finance book and read over the Securities and Valuation chapter, and the Stocks and Valuation section.

Answer 3

Check out these, they did really well last year: SORL, SORL Auto Parts mfgr.; FSTR, LB Foster does rail and construction tubular product fabrication; DVW, Covad Communications is in wireless communications; FRN, Friendly Ice Cream; NSUR, Insure.com sells insurance on the internet; INXI, Inx is in communications for schools & such. Good luck.

Answer 4

Try the following:

~ Symbol - PPD "Legal Services"
~ Symbol - MMC "Identity Theft Services"

I wish you the best!