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IBDvalueinvestin (98.45)

Invest like a Value Investor on earnings period.



April 20, 2012 – Comments (2) | RELATED TICKERS: TPX , SPY , DIA

Value Investors love to invest when all others are taking profits like they are doing on TPX today. They company beat earnings but then forecast that going forward it will not meet previous forecast by a few pennies.

What that did to the stock share price is ? To be blunt "Crashed and burned shares  down -18.50/shr.


Yes this is what value investors hope happens to many stocks on earnings day, so that they could buy while your selling at a loss.



Value investing is an investment paradigm that derives from the ideas on investment that Ben Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis. Although value investing has taken many forms since its inception, it generally involves buying securities whose shares appear underpriced by some form of fundamental analysis.[1] As examples, such securities may be stock in public companies that trade at discounts to book value or tangible book value, have high dividend yields, have low price-to-earning multiples or have low price-to-book ratios.

High-profile proponents of value investing, including Berkshire Hathaway chairman Warren Buffett, have argued that the essence of value investing is buying stocks at less than their intrinsic value.[2] The discount of the market price to the intrinsic value is what Benjamin Graham called the "margin of safety". The intrinsic value is the discounted value of all future distributions.[citation needed] However, the future distributions and the appropriate discount rate can only be assumptions. ([citation needed] Graham never recommended using future numbers, only past ones). For the last 25 years, Warren Buffett has taken the value investing concept even further with a focus on "finding an outstanding company at a sensible price" rather than generic companies at a bargain price

2 Comments – Post Your Own

#1) On April 20, 2012 at 1:46 PM, IBDvalueinvestin (98.45) wrote:

Nice chart showing where TPX should settle in the coming days:

Shows $68 to $74 as possible rebound area.

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#2) On May 07, 2012 at 2:11 PM, chopchop0 (45.61) wrote:

Bought IRL under $50.  :D

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