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by thatguysaguy 543 days ago
> Monitor Apple, Google, Microsoft, and Meta stock. Notify me if any of them start trending toward being undervalued

If you actually had a system that could detect when a stock was "undervalued" you should just trade directly on that system instead of selling it to consumers. This is pretty clearly scammy/predatory towards retail investors.

2 comments

Not necessarily. Say you can make 20% a year with your system. That's very respectable. But unless you have a large account already (1M?), you will make more by providing this knowledge to others.
You don’t need 1M to trade 1M. Ive seen retail accounts with 50x leverage
We only look at when the stock is objectively "undervalued". I'm not saying the system will tell you that a stock like Palantir is undervalued because it has a bright future. No. This system only tells when a stock is objectively undervalued. There are a few ways to know this.

Here some examples:

- Market cap is less than book value.

- Market cap is less than free cash flow x 8

There are other ways, but these are some examples. Being undervalued doesn't mean its a good company, the trick is knowing why its undervalued and if that valuation is justified.

> the trick is knowing why its undervalued and if that valuation is justified.

If it’s justified, then it’s not undervalued.

Everything you described above is also just wrong and you should please stop encouraging uneducated retail investors to believe anything that fits these heuristics is “objectively undervalued”.

If any of these metrics were arbitrage, it would mean the fastest execution wins and the gap wouldnt last long. These metrics almost never work
> This system only tells when a stock is objectively undervalued. There are a few ways to know this.

> - Market cap is less than free cash flow x 8

Lol. "Objectively".

If that were true you wouldn’t need an ai to tell you.