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The life cycle of a stock is what you are getting at I think. New = Growth upwards movement in the price with some volitility. MSFT is an example of this explosive growth some volitility. The next phase of life is mature company again MSFT is an example of this. They pay a dividend now they are a virtual monopoly in software so their growth is limited/mitigated to some extent. The final phase is the decline of a company Kodak may be an example of that (don't count them out just yet) a mature company that has a hard time adapting to a new market condition. (who uses film anymore?) I saw recently Kodak is producing an almost disposable digital camera for cheap I wish them luck.
All that said the way to determine a "when to buy" is knowing what part of the cycle they are in can help. Analyze as much info as you can about said company then when there is no reason not to bite the bullet and buy it.
The strategy you use will help determine time to buy as well.
I hope that helps.
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Joe Styles
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