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Motley Fool Global Gains / GGM: Special Event


Subject:  Re: buy below price updated Date:  10/11/2007  4:26 PM
Author:  anuragupta Number:  98 of 111

I think that buy below prices are rather arbitary.

What matter is whether a company is undervalued at current prices or not strictly based on future prospects. Future prospects are a function of market conditions, company's approach and its current financial health.

The definition of undervalued is itself quite fuzzy. For example, one might consider a company to be undervalued based on expected growth of x% in share price. x could be anywhere > 10% depending upon the risk tolerance of an individual. It seems to me for many MF newsletters like SA, HG or GG the x values is 15%. Maybe someone from GG team can add what their target value x is.

I think there is easily an error margin of 50% in predicting f