I am planning on buying MEDIS TECHNOLOGIES LTD. (MDTL) and they are currently trading at $11.37. This is only a few cents away from their 52 week low. Is that a good time to purchase the stock? Does it represent the start of a new cycle? Thank You.
2007-08-02 19:39:25 · 3 answers · asked by dreamliner787 1 in Business & Finance ➔ Investing
Its not a good buy.
See the stock is at 52 weeks low, what does that mean, it means the company is not making profits.
by buying it you will be taking huge risks, if the company makes some progress the next quarter, u will make good profit, but for the consecutive 4 quarters the company has not made expected results.
Don't think the market is offering you this stock at a low price, this stock is at a low price because there is something fundamentally wrong.
Take my advice because I have gone wrong in this many times. I bought wwil ( indian market) when it was at 72 actually the 52 weeks low at that time was 70, do you what happened I sold that at 60 now the price of that stock is 55.
You should buy a stock at a low price only when its fundamental is strong. I am so sure the fundamental will not be strong for a 52 week low stock.
Hope this helps, be sure to check the fundamentals.
2007-08-02 21:35:03 · answer #1 · answered by freekeswar 3 · 0⤊ 0⤋
The 5 year weekly chart looks like a "Bull Trap". The stock has been channeling down since May 2006. There is no indication of a reversal in the weekly charts.
On a two year daily chart the stock has broken the resistance 2X @ $12.91. The stock is under its 200, 50, 21 & 10 day average.
Why would you even consider buying this when there are so many stocks that look better? I would short this before I'd buy it. The chart is too messy to take any position. But if I had to..... it would be a short... not a buy.
What's worse.... you're looking for advice from strangers whose qualifications and motives can never be known. YOU NEED TO TAKE A YEAR & READ EVERY THING YOU CAN ON INVESTING. Your approach could be a financial disaster waiting to happen.....................
2007-08-03 00:15:14 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
Why would you ask this on yahoo answers? How can you trust people whom you don't know? I'd rather look up SEC filings of the company. I trust these filings much more than strangers on yahoo answers.
2007-08-02 20:11:53 · answer #3 · answered by RockiesFan 2 · 0⤊ 0⤋