Wednesday, February 10, 2016

Being smart with $$ - Don't let a lower stock price fool you into thinking it's cheap

If a stock hit a high of 75, is it now cheap if it's at 50? How about 40? 23? Where a stock used to trade may have little to do with what it's worth now.  CISCO hit 75 in the year 2000 and sixteen years later it's below 23.  And that's for a great company.  Amazon has recently fallen from around 700 to 490.  Is it cheap?  Who knows?  Some experts will always says yes and others will always say no.
Larry Pike, CFA
www.clientpriority.com

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