- Stock repurchase plans, or buy-backs, can lift the price of a stock. Buying a stock before the repurchase program is announced should result in a nice pop.
One problem with stock buy-backs however is the company could use the money to make acquisitions, perform research, or make any number of investments.
- Here's something not to do: don't buy a stock of a company you know nothing about in the name of diversification. Stick with what you know. If you have a concentrated portfolio, its not necessarily a bad thing.
- Again, study each new pre-IPO that is going to be listed on the NYSE or NASDAQ. Try to determine which newly listed companies have the best chance. It's tougher than is sounds to choose a long term winner.
- If you're looking at a company that is unprofitable, you obviously want to determine if the co will ever be profitable. If you buy shares of a company losing money and then if news hits the firm is now in the black, I bet your shares popped a lot.
- Make sure the companies and funds you research have demographic or other trends at their backs.
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