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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Jurgis Bekepuris who wrote (46104)1/5/2012 6:09:21 PM
From: Sergio H  Respond to of 78740
 
Horrible businesses in terminal decline may already have their price slashed, leaving little room for making a profit by shorting. A better barometer may be the stock's beta, which is readily available in Yahoo Finance.

COH's beta is 1.7, meaning that it's return is likely to be almost twice the magnitude of the avg. market return.
Higher-beta stocks tend to be more volatile and therefore riskier, but provide the potential for higher returns or higher losses.

COH's high beta was displayed this past year, going from a high of 69.20 on July 7th to a low of 45.70 a little more than a month later and then back up to the 60s.

Due to its beta, COH qualifies as a short candidate for someone spotting a wrinkle in the armor.