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.
Posted by William Bias at 10:01 AM