undervalue or overvalue stocks

dimuthubasd · 1 undervalue or overvalue stocks Sun May 17, 2015 7:17 am

dimuthubasd

Senior Equity Analytic

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hi guys, its me again thanks for the stock buying tips and advises in my previous topic. when i surf the net for more info i came cross word undervalue and overvalue shares. in finance site like investopedia they highly recommend invest in undervalue shares. but how can i match it with cse (sri lankan market) when i find a stock, (say that RHL or ALUF as it mention in previous topic) how can i understand this is a undervalue share. bec i came to know that overvalue share are not worthy in long term.
i must say that when i read and learn things further, it getting so complicated. is it better and wise i must stick with my investment advisers opinion?

piras · 2 Re: undervalue or overvalue stocks Sun May 17, 2015 8:34 am

piras

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By looking at NAV values following are undervalued
CINV
GUAR
OSEA
VONE
RHL

raider · 3 Re: undervalue or overvalue stocks Sun May 17, 2015 5:49 pm

raider

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Book value is not a good enough indication of the value of a stock, a stock must be valued on its earning potential.

However, CINV, GUAR and RHL are good picks like piras said.

I suggest you also have a look at

SAMP - 300-320
DIST - 300-320
PLC - 32
SIRA - 6
RICH - 12-13