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Old 01-17-2013, 07:01 PM   #44
damameke
6th Gear Member
 
Join Date: Dec 2008
Location: Canada
Posts: 1,372
Quote:
Originally Posted by Blades View Post
if were talking buy and sell stocks and you have lets say $5000 to put into stocks. (forgetting all the extra costs associated with a trade)

you buy apple at lets say $550 per share you can get what?

5000 / 550 = 9 shares

now lets say you sell at $600

600 x 9 = 5400 ... profit of $400

you buy facebook at $30

5000 / 30 = 166

now lets say you sell at $38

166 x 38 = 6308 .. profit of $1308

my point is you can make more money buy more shares of a different stock because of the amount of money you have to spend.
I see your logic if you have limited fund to invest but one should invest based on the evaluation of the stock as well as PE ratio not by how high the share price is.

Apple was trading at $702 on Sept 12 2012, it is now at $505 plus, so at this price, the PE is low and the valuation at this level is very reasonable, so is it a good price to buy or do you see it going below $500?

So, based on your logic, do you sell Apple to buy RIM or FB?, I personally think, it is a good move, just place a tight stop loss..
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