Buy or sell a stock

Hi all, I was just wondering whatever tools have you got by learning CFA material, can you make quick buy/sell decision on a stock? What minimum data do you need- say just the things from newspaper is available. Thanks S

After you get your charter you still won’t have any knowledge that allows you to make a quick buy/sell decision or even a slow buy/sell decision that does any better than the market.

I would suggest calling an equity analyst in your city, and ask him to take a look at one of his equity pricing models. From that you can understand what variables go into the buy/sell/hold decision, and which of those variables are available through newspapers. Most analysts dont mind sharing their models, if you request nicely. It is really a good learning experience.

Well, thanks guys. I was just thinking if you are asked to come up with a buy /sell decision on Microsoft within an hour and you have data from say google finance, what would be your line of thoughts? S

  1. Data from google finance is nearly useless. 2) MSFT is probably efficiently priced and I have no more information than anyone else 3) Sell. I hate them.

JoeyDVivre Wrote: ------------------------------------------------------- > 1) Data from google finance is nearly useless. > 2) MSFT is probably efficiently priced and I have > no more information than anyone else > 3) Sell. I hate them. I agree with Statement 2. There are too many investors/analysts following this stock

I do agree with your points guys but just to demonstrate a chain of thoughts leading to some conclusion. microsoft was just an example. Pick up any company and rationalise and express your thoughts framework. S

Do a search on GD and find a good argument about some company. AAPL generates good discussion.

Here’s a better one. Do some research on AKNS, simple capital structure, easy to follow bs and is. Go and use some of the equity valuation methods you have studied so far and come back in an hour to share your insight and make that CFA backed recommendation. Recommendation could be in form of one-year price target, current position on the stock (over/under/properly valued) with % up/down potential.

Except that’s not how it works here. Go make some provocative claim on GD about AKNS and try to rile up Virgin or something. (Akeena Solar? What does this company do?)

> Most analysts dont mind sharing their models, if > you request nicely. It is really a good learning > experience. Made the experience that working models are kept secret.

Pure solar panel producer play. One of the major solar panel producers in the States. Vertically integrated with installation and financing support for retail and commercial customers. sorry for off-topic