Stocks

[Mark F]

im looking to invest in stocks price range $5-15

[ckmk47]

im looking to invest in stocks price range $5-15

IMO, wrong way to say your price range. 
What is the total you want to invest in one stock?

an example: A $5000 investment in a $12 stock has you buying 400 stocks.  If it goes up $3 each.  Great. Now your investment is worth $6000.

A $5000 investment in a $75 stock has you buying  65 stocks.  An odd number, but easy to order and own with an on line broker.  If it goes up by the same percentage as example 1,  it goes up $18.  New total $6045   Same profit approximately.

So the price of the individual stock is less relevant than the total amount you're investing in one company. 

[Mark F]

I'm investing a small amount of money. Few hundred dollars

[dealvr]

I'm investing a small amount of money. Few hundred dollars

With transaction fees you will prob ending up losing money.

[Am]

With transaction fees you will prob ending up losing money.

not if he is investing longer term

[yos9694]

Love to get some thoughts from this group on the Hilton IPO. I don't want to violate any forum rules or I'd have put this question out in the "On The Road" section to get more eyes that are familiar with hotels.

I like IPOs (especially this year's) and there are a lot of positives about Hilton right now (restructured debt, solid income statement, good leadership). Blackstone is holding on to their shares, which says something even if you don't know much about the company. But I wonder if the valuation is too high- is Hilton worth more than Starwood or Marriott (@ $14B market cap each)? The offer range translates into $20B - $24B market cap.

http://www.bloomberg.com/news/2013-12-02/hilton-seeks-as-much-as-2-4-billion-in-biggest-ever-hotel-ipo.html
(Note, the article has some fuzzy math so if you want to make sure your numbers are right you need to check the prospectus)

[eli1571]

With transaction fees you will prob ending up losing money.

not necessarily, i'm not an analyst but AAMRQ (american airlines) is down to 10.8 will prob go back up

[Yeki89]

im looking to invest in stocks price range $5-15

Try S they have been up as of late, I was eyeballing them about a year now. I have seen then grow from under $6.

[good sam]

I'm investing a small amount of money. Few hundred dollars

Mark, stocks go up proportionately.  If a stock goes up 5%, you make 5% on your investment.  It doesn't matter whether you have 1 share or 5000 shares. (And don't tell me lower prices have more volatility.  It's not true.)

So you shouldn't consider stock price, just value.

[good sam]

With transaction fees you will prob ending up losing money.

Nah, you can use online brokerages for $5-7 per trade.

[dealvr]

Nah, you can use online brokerages for $5-7 per trade.

Assuming $6 on the buy and $6 on the sell is 4% of $300.
Returns must be greater than 4% per trade to not lose money.

[ckmk47]

I'm investing a small amount of money. Few hundred dollars

I once owned 2 shares of Apple (AAPL). Total cost less than $900.

[ckmk47]

Assuming $6 on the buy and $6 on the sell is 4% of $300.
Returns must be greater than 4% per trade to not lose money.

If it's a really small amount of money it probably doesn't belong in stocks unless you're keeping the stocks a long time.  For the long haul with a small amount of money you should consider index stocks.  They mimic the index and go up as the market goes up. (or down) and doesn't take stock expertise to investigate.

[good sam]

If it's a really small amount of money it probably doesn't belong in stocks unless you're keeping the stocks a long time.  For the long haul with a small amount of money you should consider index stocks.  They mimic the index and go up as the market goes up. (or down) and doesn't take stock expertise to investigate.

Unless he's looking to assume some risk on this small amount of money and invest in highly volatile, high risk stock, with the potential to make a quick 10-15% gain.

[Mark F]

Unless he's looking to assume some risk on this small amount of money and invest in highly volatile, high risk stock, with the potential to make a quick 10-15% gain.

What would be a stock like that?

[Centro]

What would be a stock like that?

Penny stock.

[ckmk47]

With only a few hundred dollars to invest, the stock market may not be the place.  DD main has an idea for the Xbox resale.  stuff like that may be more worthwhile with more time than money.

[Mark F]

I will barely make $ if I buy that to resell. $499 + tax and then ebay fees and shipping to buyer

[ckmk47]

$500 + $50 tax + $50 ship + $50 ebay = $650 expense.

sell price $700.  50 profit /650 expense  =  7.6%

What fantasy so you have that you'll make on stocks in 2 weeks with less than 5 hours of work?

Do you think researching stocks intelligently doesn't take time and effort? Or would you rather  just listen to every hot tip at the mikva?

[Mark F]

$500 + $50 tax + $50 ship + $50 ebay = $650 expense.

sell price $700.  50 profit /650 expense  =  7.6%

What fantasy so you have that you'll make on stocks in 2 weeks with less than 5 hours of work?

Do you think researching stocks intelligently doesn't take time and effort? Or would you rather  just listen to every hot tip at the mikva?

ebay and paypal fees are around $90 if I sell it for $700 and seems like it will be hard to get more then $650