What is Price Target?

LiquidCrystal said: "Hello, What is the "price target" for a good stock? is it the targeted selling price or the price I should buy the stock at if reached? Thanx, LC"

mascas said: "LC, i think it is the selling price of the stock. Your price target is a certain percentage over what you buy the stock at in which you are satisfied with to sell..Mine is 10% (just what I was tought) hope that helps you."

HappyHarry said: "Generally, stock analysists set a "target price" for the stocks they purchase. The target price is the price they feel the stock will go to, and at which they will sell."

LiquidCrystal said: "Thank you mascas and HappyHarry, So price target is a satisfactory price for selling the stock which supposedly will make a good profit. Thanx, LC"

HappyHarry said: "Yep, that's it. Its the price you've set, based on your analysis, where you'd be happy exiting the trade with a profit."

IntelligentInvestor said: "Do you guys think it's a smart strategy to set price targets for selling???"

HappyHarry said: "[QUOTE=IntelligentInvestor]Do you guys think it's a smart strategy to set price targets for selling???[/QUOTE] Definitely. One of the biggest problems I've had is having a nice gain and not knowing when to sell. If you set rules, you can avoid this problem."

InvestorMan said: "[QUOTE=LanceJ]Studying the behavior of one of the greatest investors of all time Warren Buffett reveals that he always has an exit strategy.[/QUOTE] [SIZE=3][FONT=Verdana]Where and when did Warren Buffett say he "always has an exit strategy"? Warren Buffett doesn't even look at the stock market. When Warren Buffett gets his eye on a company, he looks at it as if he were buying a business. He'll find a company that has a strong management track record, no history of serious problems... a franchise business rather than a commodity business. Once he picks a business he likes, he uses a certain formula, which he explains in his book, to determine what the value of that business is. Then he looks at the stock price and market cap of the company to see if it is trading below his determined value. If it is, he buys the company... because it's a good deal, not because of any market conditions. After Buffett buys a company, he doesn't even look at the stock price. He buys for life. Has he held all his positions for life? No. Sometimes a company's good management turns bad or sometimes a franchise business starts looking more like a commodity business, such as what's been happening in the auto industry. Then he'll sell. Otherwise, he doesn't have an exit strategy. Come on! If you're going to quote the man, at least have the courtesy to read one of his books![/FONT][/SIZE]"

chahinemm said: "[QUOTE=InvestorMan][SIZE=3][FONT=Verdana]Where and when did Warren Buffett say he "always has an exit strategy"? Warren Buffett doesn't even look at the stock market. When Warren Buffett gets his eye on a company, he looks at it as if he were buying a business. He'll find a company that has a strong management track record, no history of serious problems... a franchise business rather than a commodity business. Once he picks a business he likes, he uses a certain formula, which he explains in his book, to determine what the value of that business is. Then he looks at the stock price and market cap of the company to see if it is trading below his determined value. If it is, he buys the company... because it's a good deal, not because of any market conditions. After Buffett buys a company, he doesn't even look at the stock price. He buys for life. Has he held all his positions for life? No. Sometimes a company's good management turns bad or sometimes a franchise business starts looking more like a commodity business, such as what's been happening in the auto industry. Then he'll sell. Otherwise, he doesn't have an exit strategy. Come on! If you're going to quote the man, at least have the courtesy to read one of his books![/FONT][/SIZE][/QUOTE] i would like to add that Warren Buffett does have an exit strategy that is more at a different level which is based on understanding the company he is getting into and the risk envolved in his exit vs staying with the company. His exit strategies which ever he has been into has been reflected by the change in the business or economic atmosphere therefore both u and lance are right just that the context of exit is person. I personally look for high results therefore when i reach my target price of at least 30% of entry i set a stop loss of 8% that seems to work for me and i have brought trades as high as 70 some% and some below the 30%. exit strategies are just when u feel that u have reached your max of patience of the stock and don't want to deal with it anymore. warren is the extreme lenght and mine would be extreme short :D anyways i hope it helps. chahine"

HappyHarry said: "Another interesting read concerning silver is how the Hunt Brothers nearly cornered the world's silver market. As an investor, you should always have a target price. Otherwise you'll end up holding at the wrong times."