Top 50 Rules to Investing
Rule : 42
Buy Value Stocks That are Priced Less Than Their Underlying Assets are Worth.
Low Priced Stocks To Buy In India In 2017
What are low priced stocks? Are penny stocks low priced? In stock investing it is important to define ‘low price’. General understanding is, Rs.100 and greater than Rs.50. But it can be different in case of stock investing. A stock which is trading at Rs.100 can be considered cheaper than a stock trading at Rs 50.This is a reason why expert investors never looks at market price of stocks in isolation. The trading price that we see can often be very misleading. This is one reason why expert investors always perform ‘stock valuation’ before buying one. It is the result of stock valuation that one can identify Rs.100 stock as cheaper than Rs.50 stock.
Low priced stocks are those stocks which are trading at discount to its intrinsic value. But it is not easy to estimate intrinsic value of stocks. There is an easier alternative available to check if stocks can be tagged as low priced stocks. We can use financial ratios to evaluate if a stock is trading at cheaper price. These financial ratio is a great tool for common people who are not very conversant with analyzing financial statements.
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