Get started

Cheap

Is it cheap? Why "dilution" is a concept you NEED to understandMany newbie investors get in trouble because they don't understand the relationship between share price and share count. If you're new to investing and you've never heard of "dilution," it's very important that you keep reading this post. If I look at a standard chart of Spirit Airlines's share price, such as a upper chart above, I might conclude that the stock is cheap right now. Spirit shares are trading well below the price they've traded at for the last five years. This is an illusion. The valuation of a company is its share price times the number of shares outstanding. When a company runs low on cash, it sometimes issues and sells new shares. This "dilutes" the ownership percentage of existing shares. Imagine I have a pie, and I've invited you and two other people over for a piece. We're each going to get a quarter of a pie-- a really big slice! But then you decide to invite a friend. The size of the pie doesn't change, so now we have to cut it in fifths so your friend can have a slice. Each of us will get a smaller piece. Issuing new shares works the same way. Since the beginning of the Covid-19 pandemic, Spirit Airlines has issued 29.14 million new shares, increasing its share count by 42.5%. That means that each share now represents a much smaller proportion of the company than it used to. The shares have been "diluted." Because of dilution, looking at a chart of the price of a single share doesn't tell you how "cheap" or "expensive" a company is compared to its historical valuations. Fortunately, there's a quick and easy way to chart a company's actual valuation. Share price multiplied by shares outstanding equals the company's total price tag, its "market capitalization" or "market cap." To chart market cap on TradingView, find and click the button labeled "fundamental metrics for stocks" at the top of the chart. Type "market" in the search box, and TradingView will narrow the list of metrics down to the one you want. Clicking on "market capitalization" will add a time series of the stock's market cap to your chart. When we look at market cap for Spirit Airlines, it doesn't look cheap anymore. Spirit is trading within its price range of the last four years, even though the company is now financially worse off in every way. With earnings negative and sales nearly cut in half, Spirit is priced as if the pandemic had never happened. By charting market cap, you've adjusted for dilution and gained a much better understanding of the asking price.
Editors' picks
NYSE:SAVEEducation
by ChristopherCarrollSmith
52
BItcoin descending channelFeel free to challenge my TA and/or give your view on the subject. - Descending channel, which stood for 11 months - BTC kissed the top of the channel. Will be interesting to see what the weekend brings and whether or not we"ll see a breakout. This would signify the end of the downtrend. - Volume is consistent, but we'll be needing more for a breakout. - Expecting a return to the center of the channel, or (preferably) a further retracement towards the "Cheap BTC zone" - Not expecting this to happen before the end of june.
COINBASE:BTCUSDShort
by Coinathlon
1
Nikkei 225 Possibilities of Bullish ContinuationThe bull is weighing against the bear at the moment on TVC:NI225 knowing how the global equity markets turning from red to green because recently market participants having higher risk appetites. Also, at this point, we know that YEN losing its strength against may other currencies and it's been a couple of days now so I think that should help the export-oriented economy country like japan as well. We are having a cheaper currency which will obviously help the businesses to export more in ease. Businesses will rise back and eventually it will grow the demand for such domestic equities leading the index higher.
TVC:NI225Long
by jessi061
HOW TO FIND CHEAP ENTRY SIGNAL FOR RISKRETURN LIKE 1:10 AND MOREHI BIG PLAYERS, in this tutorial I want educate you my experience, how to find really cheap entry for trading. In this example it was possible to take part on a 1:10 trade. It means for 1 USD investment you could take 10 USD return (Risk-Return-Ratio => RRR). ///////////////////////////////////////////////////// E X A M P L E F O R A B U L L I S H T R E N D ///////////////////////////////////////////////////// At the beginning we are looking for an oscillator, that shows us an oversold area and in the same time a bullish trend with higher and faster EMA than a slower EMA on the chart. This is possible with a slow EMA(close, 200) and a fast EMA(close, 50) and a RSI(close, 14).... => this is for example my way to find it on the Forex Screener from TradingView at fast as possible. I developed a similar structure with more quality signals with my candle oscillator indicator. Named: CO 'I. This indicator allows to see the candle between a range und works at well like the RSI oscillator with 30% and 70% oversold and overbought area. The most positive on this indicator, you don't only see the closing relating price - you see almost more: open, high and low. Furthermore, I found out that if the body of a candle goes into the range between 30-70% and this is the same trenddirection in the chart, then it was to 90% the lowest/highest bar or 3+ bars nearby them. So back to my education: My main view starts on 4H Chart. In this example I found on EUR/JPY a bullish trendfilter with the EMA's and a oversold area on my OC 'I (the wick of the candle was touching the 30% line) - it's only necessary that a touching of the candle is true. NEXT STEP: After this bullish signal it is necessary to zoom in the lower timeframe. Here I choosed the 1H Chart and had to wait till the body of the OC 'I also touched the 30% line and of course wait till the candle is finished. It don't depend how much the body touch the 30% line - but it's necessary that the body is touching. In addition, a bullish divergence was built (looking to blue lines). After the first touching I go into a lower timeframe again. The 15H-Chart was choosed for this example. Hereby the same game: waiting till the body is touching the 30% line. NOTE: furthermore, if I going into the lower timeframe and the body is already touching - then you don't need to wait for the relase into the range and back to touching again the 30% line. The 15MIN Chart is the last timeframe. Now we wait till the body goes up and don't touch any line. This is my signal to buy. My exit depends always how the market flow are: in this case it was a big uptrend and a adapting correction wave (this is mostly the time for divergence and this why I set a takeprofit on this high). With this approuch it was possible to catch a 1:10 trade. Kind regards NXT2017
Education
by NXT2017
Waiting for Opportunity to Buy Cheap Gold with Low RiskBased on last week gold OANDA:XAUUSD run till today's highest peak, I'm looking to buy gold during retracement (Fibo Level between 61.8 and 71.8) with a selling target between Fibo 1.21 to 1.50. This idea remains valid as long as the price doesn't breach the 1560 to 1565 resistance zone from 2011 data. This set up will have more than 1.5 Risk and Reward Ratio. Don't chase the market, wait for the price to come down between 1516 and 1509 zone before buying.
FX_IDC:XAUUSDLong
by YouDontSeeMe
Capital One data breach means nothing - BullFundamental Analysis It appears Capital One isn’t the only company affected by this--it’s just the first company to publicly acknowledge it has been hacked and the most proactive in addressing the security situation. Meaning... as soon as other companies report the same, they will get the bad attention. Because of the breach they will lose $150M-300M, which is nothing for this size of a bank. The real impact might be more of sentiment towards the stock though. Equifax very recently had a much more significant breach, and the stock just brushed it off. Technical Analysis Watch the SMA(50) as support. OBV and RSI=52, did not reach dangerous levels on this drop. MACD did cross below the signal, but it is on its way up.
NYSE:COFLong
by dorfmanmaster
buying bitcoin for $ 700, how? the answer is hereThe descending wedge longer in TWO years comes to an end, all those who did not manage to jump on the train you have the opportunity to do it 15 times cheaper !!! Instruction. Cash purchase (from $ 70), bid for sale at a price of 0.1, at least half, waiting for 6-10 months! Specifically, my deal 10 ZEC ($ 600) sale at 0.1 btc = 1 BTC! in the future we sell the cue ball (2-3 years) in the range of $ 100,000 - $ 200,000! Good luck guys!
Long
by Cryptokachalka
18
Litecoin (LTC) - Multiple RedFlags, lets get back to trueprices!The fifth largest cryptocurrency by market capitalization jumped to $107.71, the highest level since June 12, 2018, according to CoinDesk’s Litecoin Price Index. The bullish move has stalled in the last few hours, though, with the price currently trading around $87. Before we get started, lets smash this "thumbs-up" button ladies and gentlemen! Litecoin ( LTC ) Chart Analysis MatrixTarget: 59$ area Litecoin did follow Bitcoin on this unacceptable fake break-out. (It bothers me, that we have people out there manipulating the market). Every cryptocurrency asset at this moment, is consolidation its value back to normal statement. Ladies and gentlemen, we are too early in the game to skyrocket. The correction is not complete, word of caution, there can still be another huge drop incoming. The MA-Ribbon, retouched 13-MA(Redline), wait for next candle to close in approx 18 hours, if that next candle breaking the 13-MA(Redline), we will see a downfall or sideways consolidation. The MaCD and histogram are both showing bearish divergence . Volume is still very low on the drop , can jump anytime now to the downside. We wait patiently 4-6 days. The longly awaited consolidation can happen in just a few days as it can take weeks, but it is likely to happen sooner rather than later. Make sure to use the comments section below if you want to share anything or have any questions, it is my pleasure to help and reply.
KRAKEN:LTCUSDShort
by juneztx