Thursday, October 30, 2014

Financial Thought of the Day October 30, 2014: Value Trap

Sometimes a company’s stock price goes down without regards to that company’s fundamentals because the stock market as a whole is in a state of fear. This is a bargain. However, a company’s stock price can go down and stay down due to permanent company fundamental degradation. This is NOT a bargain. This is called a value trap.

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