Tuesday, January 9, 2007

Evaluate Value Stock

We’ve been through growth stocks, now lets look at their counterpart “value stocks.” Unlike growth stocks, value stocks are usually inexpensive. Based on price to earnings and price to book value ratios these stocks have been undervalued. Value stocks trade at low prices, compared to their earnings. Value stocks considered to be low risk stocks.

Halliburton Company was Jim Cramer’s #3 value stock pick of 2007, but why? In order to be a successful individual online investor you have to understand how to pick a value stock. What’s in store for HAL? You, the online investor, can measure how well a stock will do in the future by reading company reports and watching out for it in the news. With value stocks were looking for stocks that were undervalued, but are expected to go up in price in the future. That’s how you make money. Buy it a stock, like Halliburton Company (HAL) at a low price and then wait for it to shoot up.

So, I’m going to do the research and see what makes Halliburton a good value stock to have in your portfolio. I’ll listen to their latest conference call, request the online investors kit, and you’ll find much more information, like press releases just by browsing their website.

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