re: Potential good deal alert: Bayer (BAYRY) |: Update: After 6 months up 43%

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So how are you finding these deals on stocks? Are there any metrics you use? Source for tips?

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Google Finance Stock Screener is a usefull, easy to use tool. P/E, forward P/E, margins, and growth are good to know and compare between similar companies and the market as a whole.

I prefer to look for a stock that has recently taken a dip in share price. Look at how far a stock is off its 52 week low. I like it when a stock is much closer to its 52 week low than to its 52 week high. Once I find one that's taken a dip, I try to determine if the stock's dip isn't entirely rational (like BAYRY when it was trading with a forward P/E of 11), or if there is upside to the company that likely isn't priced in to the current price (like when Nintendo was trading for under $20 before Pokémon Go release).

While the numbers are obviously important and a big part of choosing stock, I recommend trying to find companies that peak your interest and that you enjoy learning about. If you come across articles about companies you find interesting or think "hey, I think that company is on the right track," go from there and do research on it. Look at the numbers, compare it, and do searches for any and all articles pertaining to that company to give yourself as much info as possible. Try to keep the mindset of an active entrepreneur more than someone just wanting an easy, passive ROI. If it's the latter you want, I recommend mutual funds.

Disclaimer: I'm not anywhere close to an expert or professional. All of the above is just the opinion of someone with one year experience of making a few very small trades.

BAYRY is up 22% since I made this thread. Over the same time period:

NASDAQ: up 5.2%
DJIA: up 5.3%
S&P 500: up 4.1%


This thing still has room to grow with a forward P/E of 13.3

However, since there are always 2 sides, here's a recent article written by someone who thought BAYRY was fairly priced at $108 (BAYRY closed at $113.92 today) - https://seekingalpha.com/article/4037737-bayer-little-upside-left.

I don't find the article compelling, but it is substantive and something to consider if you're thinking about getting in now.

Currently sitting at $122.95. Up 32% since I made this thread.

Over the same period of time:

DJIA: up 10%
S&P 500: up 8%
Nasdaq: up 12%

MOAR

What's next....

We don't have that kind of time!

No I don’t. I bought a house and had a kid, so all my “play” money is gone.