My current position November 19, 2008:

• .BABZ BA FEB 2009 40 Call - cost : $5.70
• CVI - cost : $3.60
• .KOBI KO FEB 2009 45 Call - cost : $4.20
• MECA - cost : $2.10

I bought all stocks and option hoping the price will go up.

Tags: BA, CVI, KO, MECA, option, stock

Chart pattern is a formation on stock chart that shows signs of future price movements. Stock charts show the relation between stock price and time. There are many types of charts like line chart (only shows closing price), bar charts (shows high and low price for one period, and closing price), and candlestick. Chartist uses this pattern to make buy/sell decision. Chart pattern is used in technical analysis which assumes that trend tend to repeat itself. There are many chart patterns. The popular are Head and shoulders, Cup and handle, Double tops and bottom, triple top and bottom, and triangle.

Tags: Chart pattern, cup and handle, Double bottom, Double tops, stock, triangle, triple bottom, triple top

Relative price strength measures price trends that indicates how a stock is performing relative to other stocks in its industry. It is calculated by dividing percentage changes of a stock with the percentage changes of an appropriate index.

Tags: Relative price strength, stock, stock index

The PEG ratio compares a stock price/earning (P/E) to its expected EPS (Earning Per Share) growth. If a company’s stock has P/E 20, and its EPS is expected to grow 20%, then PEG will be 20/20 = 1. PEG equals one, means that it has fair value not undervalue nor overvalue.

PEG can help investor in finding low valued stock. If PEG lower than 1, it is possibly a sign of undervalued stock. In addition, if PEG is greater than 1, it might indicate that the stock is overvalued. Growth stock usually has PEG greater than 1 because it is expected to have high growth. Always remember to compare PEG and other ratio with other companies which are in the same industry and preferable the same size.
The hard thing when using PEG is getting the EPS growth. We can’t predict EPS growth accurately, although companies usually set the companies growth target. Anything can happened in the future, so PEG might be misleading.

Tags: Earning Per Share, EPS, EPS growth, low valued stock, P/E, PEG, Price Earning Growth, stock, stock price

Stock split refers to a company action that increases the number of outstanding shares, by lowering their price. If a company have 1000 shares with a price of $5, and split its stock “2 for 1”, then there will be 2/1*1000 = 2000 shares with the price of ½*5= $2.5. Common ratios are 2-for-1, 3-for-2, and 3-for-1.
Stock split usually brings price increase, but research does not prove this. If an investor thinks that stock split will increase price, then many people will buy it so the price tends to increase. Company usually do stock split to give signal that the company has good prospect in the future. They can also think that the price is too high for small investor, so they do the stock split. By making it affordable for small investor, its liquidation will increase.

Tags: outstanding shares, stock, Stock Split