This thread should be copied and past for anyone who reads my posts.
Because I am not a trader I don't know what the market will price a share at in the short term.
I have herd absolute crap elsewhere that its the directors responsibility to keep share prices high and go higher.
I look at the underlying company, I look at what would be a fair price for that company and then I divide that fair price by number of shares on issue.
To give me a form of margin of safety I try to buy under the 'fair value'.
Because I am not a trader I don't know what the market will price a share at in the short term.
I have herd absolute crap elsewhere that its the directors responsibility to keep share prices high and go higher.
I look at the underlying company, I look at what would be a fair price for that company and then I divide that fair price by number of shares on issue.
To give me a form of margin of safety I try to buy under the 'fair value'.