Not All Price Drops Are The Same: Important Lessons On Valuation

Lessons on Valuation

In this video on lessons on valuation, I am going to cover several stocks that subscribers have requested. However, I will simultaneously provide what I consider to be very important lessons in valuation. Not all price drops are the same. When a stock is dropping from excessive overvaluation it can do so and still remain a dangerously overvalued stock. It is only when the stock price falls below intrinsic value that it becomes attractive. Unfortunately, too many people take their lead solely from stock price movements. With this video I will illustrate how valuation is always relative to operating results. It is only when you are viewing a company stock price relative to its fundamental value that you can make intelligent and ultimately profitable long-term investment decisions.

In this video I will review: Jack In The Box Inc (JACK), Smith & Wesson Brands (SWBI), Visa Inc (V), Adobe (ADBE), Skyworks Solutions (SWKS), Comcast Corp (CMCSA), Walt Disney Co (DIS)

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Disclosure: Long SWKS, CMCSA at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

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