TSXV:AUN.H - Post by User
Comment by
JonEcashon Apr 15, 2007 3:41pm
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Post# 12611351
RE: Generating Value - Waldipup
RE: Generating Value - Waldipup"Still waiting for someone to explain to me how you use fundamentals to accurately pick a low risk entry point."
Actually depending on the TIMELINE and how UNDERVALUED the investment is, then any entry point could be relatively low risk. For instance, assume all goes as planned, and valuation techniques show that AUN will be worth $5 exactly 1 year from now. Then present value that $5 with a discount rate based on risk and time so that the present value of AUN should be $4 right now, say. Then one "could" buy comfortably at any entry point all the way up to $4 now (and up to $5 next year), depending on your desired rate of return, regardless of what the TA indicators show.
This is just saying what most financial advisors will tell you, that "in general" don't try to time the market. If you've got 10-40 years to retirement say, then just dollar-cost-average into good investments that will definitely go up in the future.
Not disagreeing with your view, just showing that it can be done.
J$