I am curious about your definition of "cheap". It appears you are basing "cheap" strictly on absolute numbers without any regard or "credit" for underlying "value". Maybe that is just how your system works and that is fine. Everyone has to have a system.|
But using your example of, say GLM, from a few years ago when it was around 4 or 5, the company was losing money out the rear, in bankruptcy and future prospects were dim. Was the stock cheap then? I wouldn't think so. It may have been overpriced.
I have to assume, since I haven't read everything here, that you do not pay any attention to the fortunes and/or prospects of a company but simply trade based on the charts and the numbers.
So say if GLM now had $30 cash per share and was selling for its current $20, down from its highs, it still wouldn't be "cheap" to you unless it went to 4 or 5. In other words, the business or riches, or prospects of future riches of a company has NO value to you in determining whether it is selling at a "cheap" price. Is that a correct read of your system?