Stock Price Is At 52 Week Low - Time To Buy?
Stock price of Company A has touched the new 52 week low now.
Many of us wonder - Is this the right time to buy the stock? Before one decides, one should understand what it is? 52 week low means that when compared to the last 52 weeks of the year (including all trading days), the stock price of Company A is trading at the lowest price now.
Investment strategy - Stock at 52 week low There are many investors who consider that the winning strategy is to buy stocks on or close to the new low list.
This group of investors believes that the worst is over for the stock and from here on, the stock price will rise.
One point of caution for every such investor - the worst is not over yet.
If a stock is trading at 52 week low, it does not mean that this price is the lowest that the stock can hit.
Though the stock can bounce back and start gaining, there is also a chance that the stock can move down further and set up a new benchmark for itself on the negative front.
The first thing that we need to understand as an investor is, why the stock price of the company is trading at the lowest level.
Why has the stock price bottomed? What caused this plunge? To really understand this movement, a smart investor needs to check all the news related to the company, financial position of the company, the industry scenario, market conditions and controversies which rose around the company.
This will give a concrete idea with sufficient reasons behind the negative stock performance.
Based on the analysis and findings, if the company's fundamentals look sound and has a potential to grow in the future, invest in the stock.
Stock at 52 week low - Source of data Getting this data is very simple.
Go to any stock data site/business newspapers and check for the 52 week high/low prices.
Even in few websites you will get a list of stocks which have attained new highs and lows.
Note - Do not buy the stock as it is trading at 52 week low, it is still not cheap.
Log on to investment bazar to read more investment related articles - http://www.
investmentbazar.
com
Many of us wonder - Is this the right time to buy the stock? Before one decides, one should understand what it is? 52 week low means that when compared to the last 52 weeks of the year (including all trading days), the stock price of Company A is trading at the lowest price now.
Investment strategy - Stock at 52 week low There are many investors who consider that the winning strategy is to buy stocks on or close to the new low list.
This group of investors believes that the worst is over for the stock and from here on, the stock price will rise.
One point of caution for every such investor - the worst is not over yet.
If a stock is trading at 52 week low, it does not mean that this price is the lowest that the stock can hit.
Though the stock can bounce back and start gaining, there is also a chance that the stock can move down further and set up a new benchmark for itself on the negative front.
The first thing that we need to understand as an investor is, why the stock price of the company is trading at the lowest level.
Why has the stock price bottomed? What caused this plunge? To really understand this movement, a smart investor needs to check all the news related to the company, financial position of the company, the industry scenario, market conditions and controversies which rose around the company.
This will give a concrete idea with sufficient reasons behind the negative stock performance.
Based on the analysis and findings, if the company's fundamentals look sound and has a potential to grow in the future, invest in the stock.
Stock at 52 week low - Source of data Getting this data is very simple.
Go to any stock data site/business newspapers and check for the 52 week high/low prices.
Even in few websites you will get a list of stocks which have attained new highs and lows.
Note - Do not buy the stock as it is trading at 52 week low, it is still not cheap.
Log on to investment bazar to read more investment related articles - http://www.
investmentbazar.
com