Zecco.com » General Investing » Screening & Picking » How to make a wise decision
Last post 05-10-2008, 5:29 AM by aquaswim47. 5 replies.
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  •  05-07-2008, 8:54 PM 28683

    How to make a wise decision

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    I'm looking at MEA and I will like to know how do I start researching on something that I'm interested in.  Some say to start on why I was interested in the first place. Well, It was a news report flash and I went to thestreet.com and looked at creamer pick and it says that is good, but how do I make my own judgement with research.. Any pointers on how to research on a particular stock?

     

    Thank you

  •  05-09-2008, 4:45 AM 28788 in reply to 28683

    Re: How to make a wise decision

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    first read up on the company. look at quarterly reports and news pertaining to the company in general. Example: ntdoy (nintendo) i did some research on nintendo and it turns out the reason whty they sell games for 50 instead of 60 is because they dont need ot spend as much money as the other guys on making the perfect looking game. With ps3 and xbox 360 they generally make games that are 1080i/p (1920x1080 resolution) where as nintendo is 480 p. This means they dont have to spend their time making high res textures and an insane amount of detail into the textures and product in general because at a lower resolution its harder to see all the bells and whistles anyway and this makes games more profitable. the main thing that got me into nintendo wasnt even the cost per game for developers so much as it was the fact that they made 50 dollars per system at launch (speculative number based on an estimate from an article i read online at launch november 2006). PS3 and xbox 360 lost money per system at launch with ps3 losing 125-200 a unit and xbox 360 about 100  as well. This means that nintendo from the get go was making bank right out of the box. currently there are 25 million wiis sold and that profit per system has no where to go but up as they have kept the system atg the same price that they launched with a year and a half ago.

     

    a tool i use: http://www.scottrade.com/LP/smart-text/

    so as far as other stocks.

    1. whats their track record on their quarterly reports? are they beating estimates? are they coming up short?

    2. What is their P/E compared with others in the sector?

    3. read news on the stock constantly! i generally spend at least an hour a week looking for news on any given stock i hold.

    some wisdom to go by:

    1. dont go in all at once.

    2. never put all your eggs in one basket

    3. always be willing to admit youre wrong

    4. IF YOU CANT CONVINCE YOURSELF THAT ITS A GOOD COMPANY THEN DONT BUY IN.

    5. buy what you know.

    6. theres no logical reason ot jump in a stock unless you are comfortable. i suggest flagging some stocks and watching it if youre new at the game.

  •  05-09-2008, 4:53 AM 28790 in reply to 28788

    Re: How to make a wise decision

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    MEA reported 1st quarter 2008 earnings of $.20 per share on 4/24/08.This beat the consensus of $0.135 by $0.065 of the 2 analysts covering this company.
    Surprise Percent: +48.15%
    Surprise Amt.: $0.065
    Consensus Est.: $0.135

    on etrade the analysts seem to love it as well as the etrade customers.

     

    Thanks for the stock idea i will watch this thing.

  •  05-09-2008, 7:43 AM 28796 in reply to 28788

    Re: How to make a wise decision

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    Thank you, for all your help. At least I know where to start.  I had no idea where to start and you shed some light on the quarterly reports and P/E.

    Thanks

  •  05-09-2008, 10:15 AM 28804 in reply to 28796

    Re: How to make a wise decision

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    Activooo,

    If you really want to learn about the business read the company's annual report or form 10-K. You can retrieve this information from the Company's website or through the EDGAR database. This should provide you with everything you need to know.

    Angell

  •  05-10-2008, 5:29 AM 28849 in reply to 28804

    Re: How to make a wise decision

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    Angell:

    Activooo,

    If you really want to learn about the business read the company's annual report or form 10-K. You can retrieve this information from the Company's website or through the EDGAR database. This should provide you with everything you need to know.

    Angell



    I also like the annual report. You also want to take a look at PE and PEG and the conference calls, but reading the annual report is extremely important.

    Aqua
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