Stock categories based on performance

Posted by Mutual-Funds | Stock Articles | Wednesday 4 August 2010 8:22 pm

"In this business if you're good, you're right six times out of ten. Have you ever right in nine out of ten." -Peter Lynch

The stocks are influenced by several factors. One of the most important factors for many companies is the year. The season will often influence how well a particular company is sold on the product or service is based there. In addition, Business Performance change as it enters a new part of the annual activityCycle.

Stocks seasonal. seasonal stocks refer to companies that offer products and / or services that are in high demand in a season, but not in other seasons. As the level of demand will change when their value and therefore its share price rises or even falls.

For example, a company that makes really good gloves in the winter cold, but it is completely dead in summer. This means that most of its profits come from winterSeason.

Investing in equities season can be difficult, because it is difficult to determine their rate of real growth, and what would be your rate of return on an investment in a company to be seasonal. To find out if you must grow the company into profit this year compared to last year's profit in the same season.

Shares non-seasonal. Companies, there are no stocks of seasonal businesses, which are not affected by the change of time. Sell goods and profit, too, allYear. This type of bearing has an inelastic demand curve. A good example of a seasonal product is not shampoo. The purchase of shampoo is not affected by weather, holidays and climate.

Cyclical stocks. This type of bearing is part of a society, the activities of natural cycles are closely linked with the economy. These shares represent how well the economy is doing, which is really a reflection of how consumers feel about the state of their nationalEconomy. Luxury cars are a great example of cyclical stocks.

If the economy is good and consumers are happy to sell an increased number of luxury cars. If the economy is slowing down and then sold their will be a decrease in the number of luxury cars, because people who want to hang their money.

non-cyclical stocks. Obviously this type of society that does not have characteristics are influenced by the movement of business cycles. Companies to provide food,Medicine and health are examples of companies that are not affected, but a decrease or an increase in the economy.

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