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Time to Buy Nortel Shares Soon?
By Mark Evans | September 19, 2007
After a stock has hit rock bottom, when do you know it’s a good time to start buying it? If investors knew the answer, they’d all be rich because, after all, timing is everything.
Motley Fool tries to tackle this investment challenge through something called CAPS, which assigns each stock a rating from one to five stars (five being the best). The factors that impact a stock’s star rating is when the stock is rated “outperform” and “underperform”; the length of time it is expected to perform; and the ratings of investors who make the stock picks.
When a company’s stock adds a star, it is a sign that investors should perhaps start paying attention for a buying opportunity. In explaining the CAPS system, Motley Fool provided six examples of stocks that have been gone from one to two stars recently. Among the group is Google, Fannie Mae, Crocs, Sirius Satellite, Dendreon and Nortel.
So is it time to consider buying Nortel? Based on some recent analyst ratings, it’s tough to tell. UBS, for example, believes the stock is worth $34 while Credit Suisse has a target price of $16.
Topics: Stock |