How to avoiding the Value Trap for Value Investors

From blogspot.com

The focus of value investing is to look for stocks that sell below their fair price. Usually, the main source of information when making the hunt is by looking at the value of PER (price to earnings ratio) and P / BV (price to book value). Common assumption that is often used is to compare the two ratios with other stocks in the same industry. At the point tersebutlah, investors sometimes face value trap. Shares are considered cheap as cheap as it was not suspected. In normal conditions, stock prices will be efficiently follow the true value. Thus, it is possible the shares which are rewarded with low PER or PBV as ... (full story)