Where can I get help choosing an investment strategy?
ValuEngine Capital Management LLC is a Registered Investment Advisory firm that trades portfolios
using ValuEngine.com award winning stock research. For more information on the portfolios and strategies available,
please visit www.ValuEngineCapital.com or call (321) 325-0519.
Should I buy a stock based solely on high-momentum ranking?
In fact, basing buy/sell decisions on any one variable is very dangerous.
In this case, many stocks with high momentum rankings are also overvalued.
As momentum ranking moves up, the overvaluation may move with it with
a concomitant increase in risk. This is exactly the sort of trap that
the ValuEngine Stock Valuation Model and its Model Price will help you
avoid by integrating eleven variables into the valuation process.
Should I buy a stock just because it is undervalued?
necessarily. Despite good fundamentals, an undervalued stock can get stuck
in that position for a long time, possibly because of human factors within
the company or for any number of other reasons. However, undervalued stocks
with a good momentum history could well be winners. Also, check the stock's
forecast return and Sharpe ratio (the risk/return relationship) as part
of your decision making process. Use the whole ValuEngine Stock Valuation
Model. That's what it's there for.