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Nairaland Forum / Nairaland / General / Investment / These 8 Signs Can Tell You If A Stock Is Doomed (13021 Views)
So you want to become a stock trader or learn the markets / MMM Nigeria: 'I Am Doomed; I Need My Money Back...' Tears, Wailings Trail 'crash / I Need A Stock Brocker (2) (3) (4)
These 8 Signs Can Tell You If A Stock Is Doomed by adebrain(m): 7:03am On Oct 24, 2015 |
Picking the right stocks in the market to invest in is not an easy task, and your success in picking the right ones is not always guaranteed. Be that as it may, these eight signs can help you determine if a stock is getting set to crash. 1. If the company has a negative cash flow. Cash flow is a company’s lifeline. When a company’s cash payments are bigger than its receipts, it means the company has a negative cash flow that can eventually lead to insolvency. 2. High Debt to Equity Ratio A debt-to-equity ratio measures a company’s bankruptcy risk by comparing its long- and short-term debts to its shareholders’ equity. A high ratio usually means the company has been aggressive in financing its growth with debt. Eventually, this debt can become too much to handle. 3. Interest coverage ratio The interest coverage ratio reveals if a company is having difficulty paying its debt. If a company’s ratio is below 1, it can’t meet its debt obligations with the period’s earnings before interest and tax. 4. The usual share price decline The fourth sign is a decline in share prices. A sustained decline almost always precedes a corporate collapse. As an example set in the US, Enron’s stock started falling 16 months before it went bust. But also, a declining stock can signal a buying opportunity. Consider the next four signs to distinguish between a collapse and an opportunity. 5. Listen to profit warnings Profit warnings should be taken very seriously. Growing evidence suggests markets under-react to bad news. Don’t forget to always listen to analyst calls, as you can glean very useful information from the questions being asked by analysts who cover the stock. 6. Watch out for stock market activity of the company owners, directors or executives Companies must divulge insider trading, as in the purchase and sales of shares owned by substantial shareholders or directors. They have the most current intel, so heavy selling or buying can be a sign. 7. Sudden exit of key staff of the company The sudden resignation of key executives or directors can also be a bad sign. Companies may sack a key executive as a sign that the company has had a terrible misstep and is making management changes as atonement, or as a sign of realization that management has been under-performing. 8. Investigations by regulatory bodies Finally, formal investigations by regulators such as SEC, frequently precedes a collapse. Companies may dabble into wrongdoing in order to stay afloat when they get into financial distress. When the company is being investigated, it is very likely that they have been caught in the process, and will pay for their crimes. And the shareholders will ultimately suffer for it. Source: http://www.ebtsconsults.com/2015/10/these-8-signs-can-tell-you-if-stock-is.html 8 Likes 6 Shares |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by CountDracula(m): 7:04am On Oct 24, 2015 |
Just have a question, what is stock? ![]() |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by adebrain(m): 7:12am On Oct 24, 2015 |
CountDracula:the link below hopefully should clear your doubts, insinuations, assumptions et all about Nigerian stocks https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick 1 Like |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by oekehinde: 8:59am On Oct 24, 2015 |
Okk |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by money121(m): 8:59am On Oct 24, 2015 |
Ok |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by lekjons(m): 8:59am On Oct 24, 2015 |
9. When Alison Madueke is the treasurer.. 8 Likes |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by johnsonkehinde: 8:59am On Oct 24, 2015 |
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Re: These 8 Signs Can Tell You If A Stock Is Doomed by plexond(m): 8:59am On Oct 24, 2015 |
I really want to do forex but Nigerian dwindling economy will not allow. Am looking @ US stock
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Re: These 8 Signs Can Tell You If A Stock Is Doomed by 69MissedCalls(m): 9:00am On Oct 24, 2015 |
if you are into stocks now is the time to buy Facebook stocks. crazy profits have been realized this year 1 Like |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by SylarsMcQuins: 9:00am On Oct 24, 2015 |
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Re: These 8 Signs Can Tell You If A Stock Is Doomed by damiplovR(f): 9:00am On Oct 24, 2015 |
Plovr was here |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by JayRise(m): 9:01am On Oct 24, 2015 |
Real signs I tell you. Instead of buying stocks from big companies in Nigeria, I'd rather invest in a promising SMB. MUST READ 10 ways to recognize a player in your relationship(love messages) |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by itsIYKE(m): 9:02am On Oct 24, 2015 |
I ll keep that in mind |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by chinkichun: 9:02am On Oct 24, 2015 |
....and I have Financial Statement Analysis exam in 1 hour. What a coincidence ![]() ![]() 2 Likes |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Kossyne(m): 9:04am On Oct 24, 2015 |
Nice analysis. You should have brought it down to the layman's level. Some peeps here are not conversant with some of the terms you used. 1 Like |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Smartresult(f): 9:07am On Oct 24, 2015 |
The continent Africa is a home of people with descent cultural beliefs, customs, norms and values that were inherited from generation to generations. African believe in their customs; respect for elders, societal norms and values, religions. They did not believe that sovereignty is in the hand of man, they accepts God intervene in their worldly affairs and so are not ready to admit anything that they believe will continue reading |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by ednut1(m): 9:07am On Oct 24, 2015 |
Buy stocks at ur peril ![]() 2 Likes |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Nobody: 9:08am On Oct 24, 2015 |
Don't buy stocks except u plan owning controlling interest in the said company in nigeria for now. I'm not gonna buy Nigeria treasury bill sef until the nigeria economy has hope |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by ayindepremier: 9:09am On Oct 24, 2015 |
what is the difference between Stock and NairaBet? 1 Like |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Lancier(m): 9:09am On Oct 24, 2015 |
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Re: These 8 Signs Can Tell You If A Stock Is Doomed by nerdymufasa(m): 9:10am On Oct 24, 2015 |
Brainy indeed Honestly, I entered this thread cos I didn't understand the topic, now I must say I've been educated. Thanks OP 1 Like |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Adesiji77: 9:16am On Oct 24, 2015 |
Thanks for sharing 1 Like |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Adesiji77: 9:18am On Oct 24, 2015 |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Cchuks27(m): 9:19am On Oct 24, 2015 |
One of the very few educative threads that has made it to the front page. Thanks for sharing. Bookmarked. 3 Likes |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Dynamitechick(f): 9:20am On Oct 24, 2015 |
Don't really know much about this looking to invest in stocks soon op might need your help |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Nobody: 9:35am On Oct 24, 2015 |
Dynamitechick:ur legs re dynamite. I would love to see more |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by ultrazone(m): 9:36am On Oct 24, 2015 |
Nice read. |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by lekjons(m): 9:38am On Oct 24, 2015 |
Adesiji77:it's true na ![]() |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by eduxerxes: 9:42am On Oct 24, 2015 |
...If Cecilia Ibru is the Group MD. If u're looking for advice on stock, holla me! I'm a Broker...I may give you some tips. |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by EazyJ(f): 9:46am On Oct 24, 2015 |
.
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Re: These 8 Signs Can Tell You If A Stock Is Doomed by Dottore: 9:49am On Oct 24, 2015 |
A good one |
Re: These 8 Signs Can Tell You If A Stock Is Doomed by Rainmaker69(m): 9:59am On Oct 24, 2015 |
Interesting read. Although the points are a little simplistic, the wording of the article isn't simple or easy to understand. Also the op forgot to mention where one can see these 'signs'. How we go take see the signal before we see the sign? Modified: If this was a thread for naked pictures or that sort of stuff, e for done full. Nigerian youths wake up. This info is more valuable than nudies. 2 Likes |
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