28 weeks later megashare how to#

Look for stocks getting smeared by association. See one of your favorites becoming really expensive when the market runs up? Sell a bit. Like a stock that the market is dumping? Buy more at a good price. Watch the stocks you already own and know what they are worth. Screening regularly during times of upheaval will uncover stocks that are newly priced to perform well. Typically, the data on these sites is automatically updated with current market prices. Many investment Web sites, (including Reuters, which distributes this column), offer screening tools that sift for stocks that are well-valued, solid earners and the like. If you want to keep pie-in-the-sky expectations out of your calculations, use p/e ratios that are based on the previous 12-month earnings of companies you are studying. And spend some time studying the quality of the earnings that form the basis for those ratios, Ryan said. Know what a company’s typical p/e ratio is, so if falling prices make that figure drop, you will know when you are in good-deal territory. Evaluate them by comparing their prices to their earnings (the p/e ratio) and then by comparing that ratio to their rate of earnings growth, known as the PEG ratio. “Johnson & Johnson fell from $64 to $61, and last time I checked they didn’t give mortgages to people with bad credit,” he said. Risk-averse investors can look for companies that have nothing to do with the housing and mortgage markets that prompted the most recent sell-off, according to Dorsey. These sales present buying opportunities, suggests Schwab analyst Jeff Ryan. Some shares were sold specifically because they were good quality companies and the sellers (big hedge funds and mutual funds) needed quick cash to pay off fleeing clients. Look for “innocent bystanders.” Not every stock that was sold off in the last two weeks deserved the dump.

28 weeks later megashare how to#

Here’s how to play a volatile market and pick up deals while others are afraid to shop.