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Identifying globally undervalued stocks

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Everyone wants to invest in inexpensive but fast-growing companies with a big future – taking full advantage of what is ahead and profiting.

But there are two issues that quickly arise – how do you know which company is undervalued and how can you set yourself up to invest in it.

Global brokerage firm Interactive Brokers has taken care of both these with their innovative GlobalAnalyst tool, which lets investors compare the relative valuations and financial metrics of stocks globally. 

Investors can search for stocks by region, country, industry, market capitalisation and currency to identify undervalued stocks.

A table displays current market and various financial metrics, in an easy-to-use and sortable format, meaning more time can be spent in making more informed investment decisions.

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One handy feature that GlobalAnalyst offers is the P/E/G Ratio (Price to Earnings divided by three-year compound earnings growth rate).

The PEG ratio, by definition, will be equal to 1 when the growth rate of earnings is equal to the PE ratio. As the growth rate of earnings increases above the PE ratio, the PEG ratio becomes smaller, and as growth goes lower, PEG becomes higher. Sell the stocks above a PEG of +1 and buy the ones below -1, could be a valid strategy. 

If the PE and the growth rate are maintained, the stock price will rise by the growth rate. If you start looking for companies to buy with low PEG ratios or to sell companies with high ones, always make sure to look into the company. Look at future earnings projections by analysts, look at regulatory filings, contact Investor relations to understand unusual data.

Look at the long term prospects of the industry; will it grow or shrink and how fast and how long? Look at the company’s competitive position within the industry. Adjust earnings growth estimates according to your data.

It is discipline and careful data gathering that sets apart the winners from the losers.

GlobalAnalyst also works smoothly with the IBKR GlobalTrader app, meaning you need only one app and one account for all your trading needs, quickly taking advantage of opportunities.

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TikTok could be banned in the United States

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TikTok in the firing line after Chinese balloon was shot down

 
China has hit back at the U.S. after officials shot down a suspected Chinese spy balloon off the coast of South Carolina.

Washington says it was being used to monitor strategic sites.

But Beijing rejects this – claiming the balloon was a civilian airship used to monitor the weather.

The incident is just the latest in a long line of diplomatic disputes between the two countries.

Now, TikTok could be banned in the U.S. in the wake of the incident.

Republicans are now pushing for Washington to distance itself from the Beijing-based app. #trending #featured

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Companies to pay extra for verified Twitter accounts

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Elon Musk has announced that companies and brands will have to pay $1,000 per month – plus an additional $50 per sub-account – to get verified check-marks on Twitter

The new pricing falls under the new Twitter Blue for Business service.

Within the next few months, only paying Twitter customers will have verified status.

Twitter has stacked on $12.5 billion in debt, and this move hopes to increase subscription revenue to meet Musk’s obligations.

Advertisers halted spending on Twitter after the takeover, but Twitter has since announced partnerships with two brand-safety vendors to win back marketers.

Musk also announced that Twitter would start sharing ad revenue with creators for “ads that appear in their reply threads”, but didn’t provide further detail.

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BMW to invest €800 million in Mexico

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BMW is set to invest €800 million in Mexico, to produce its next generation of high-voltage and fully electric batteries

 
The carmaker is looking to convert more than half of its sales into all-electric cars by 2030.

Construction will begin next year with production beginning in 2027.

The announcement follows several other major expansions from the automaker in recent months, including a $1.7 billion investment in the United States.

The move will add around 1,000 new jobs to its Mexico operations.

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