Resist the urge to high-five everyone in the cubicles next to you. Your stock may have just strapped on a rocket pack and taken off for the moon, but smart investors won't celebrate until they know that upward leap was justified. Without a fundamental basis for the bounce, these stocks can quickly make the return trip down.
Your stock just took a nosedive -- but don't panic. First, let's see whether it had good reason to fall. Sometimes, panic-fueled drops can make excellent buying opportunities. Here's the latest crop of cratered stocks that could provide a possibility for profit:
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
Last quarter, I opined that Agilent Technologieswas making all the right moves. The maker of measurement instruments sold off one division to networker JDS Uniphase and bought medical tester Varian, thus repositioning itself in the industry with potentially higher margins and growth opportunities to follow.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis. What: STR Holdings shares fell as much as 20% after the company released earnings today.
Numbers can lie -- but they’re the best first step in determining whether a stock is a buy. In this series, we use some carefully chosen metrics to size up a stock’s true value based on the following clues:
Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.
Lost in the media's need to find new superlatives to apply to Ford'sturnaround (guilty) and the hype/hand-wringing over General Motors' impending IPO is this intriguing story:
I'm a believer in growth stocks. As an analyst for our Motley Fool Rule Breakers service, I think you should be a believer, too. But even I have to admit some growth stories are bogus, hence this regular series. Next up: MIPS Technologies. Is this designer of microcontrollers for digital TV and other consumer devices the real thing? Let's get right to the numbers.
There's no foolproof way to know the future for Sherwin-Williamsor any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result. Rest assured: Even if you're not monitoring these metrics, short-sellers are.