There is no definite way to say what is overpriced. JR posted some great tips there. I tend to look at PE, PB, past earnings growth, future prospects (to see if that earnings growth will continue) as a basis for seeing what is expensive and what is not. Often this is the second part of my analysis of a company (after looking at the general business model) and this is actually quite a quick part. Just comparing those things mentioned above to industry peers and seeing if the company is worth a closer look.
Today was a pretty good day... CLWT: Transaction DateTransaction TypeDividend Per ShareShares TransactedShare Price $Split RatioCommission $Transaction Value $Share Balance8/24/2015Buy111.00002.25000.00249.75111.000011/25/2015Sell111.00003.26000.00361.860.000011/30/2015Buy100.00003.02000.00302.00100.000012/1/2015Sell100.00003.99000.00399.000.0000
IMMY: Transaction DateTransaction TypeDividend Per ShareShares TransactedShare Price $Split RatioCommission $Transaction Value $Share Balance11/13/2015Buy100.00005.56000.00556.00100.000012/1/2015Sell100.00007.55000.00755.000.0000
DHRM up triple digits! Transaction DateTransaction TypeDividend Per ShareShares TransactedShare Price $Split RatioCommission $Transaction Value $Share Balance11/23/2015Buy64.00001.54000.0098.5664.000012/1/2015Sell64.00003.15000.00201.600.0000
KONE: Transaction DateTransaction TypeDividend Per ShareShares TransactedShare Price $Split RatioCommission $Transaction Value $Share Balance11/28/2015Buy97.00003.09000.00299.7397.000012/1/2015Sell97.00004.50000.00436.500.0000
GIGA up big! Transaction DateTransaction TypeDividend Per ShareShares TransactedShare Price $Split RatioCommission $Transaction Value $Share Balance5/20/2015Buy44.00002.25000.0099.0044.00007/29/2015Buy44.00001.67000.0073.4888.00009/29/2015Buy88.00000.90000.0079.20176.000010/24/2015Buy44.00001.06000.0046.64220.000012/1/2015Sell220.00002.73000.00600.600.0000
Sold half of my largest holding yesterday. I originally bought about $15k worth of UHAL over 4 years ago at around $60, got out briefly after a couple of years at around $200 in the later part of 2013, then decided to get back in with more money a short time later. This one is going to cost me some tax money for sure: Transaction DateTransaction TypeDividend Per ShareShares TransactedShare Price $Split RatioCommission $Transaction Value $Share Balance 11/11/2013Buy662.0000226.57000.00149,989.34662.000011/30/2015Sell331.0000423.70000.00140,244.70331.0000
111kg, in a thinly traded market I might use a trailing stop-loss order to protect gains. Where to set the limit is part voodoo, part historical price research, part valuation research on the company and sector. Don't expect to be right all the time. Do your research on how to calculate stops -- percentage or a (currency) value -- using a spreadsheet. There are some templates out there, or roll your own using information in sites like Investopedia and the like. Those who trade on technicals may depend upon chart patterns to identify when to sell. There have been a number of threads on the subject. Perhaps therein may be information of help to you. HTH. YMMV.
Let me confess something: I've been secretly reading what you and JR Ewing posted all these months/years. There are tons of information Thanks for doing a great job and for educating beginners (who want to get rich) like myself for free. I really aprreciate it.
111kg, glad to help and thanks for the complements but JR is more informed than me and has a greater breadth of experience. I tend to be conservative and stick to the few things that I feel comfortable with.