Ajax in Netherlands is a Value "stock"
Ajax is big, has large brand share and makes consistent titles sorry profits annually
It can no longer "grow" in Dutch league.
To grow, it needs to invest in new markets, like the Super League, over there, it becomes a Growth "stock".
Value stock are somewhat "predictable".
Ajax is always favorites to win the Dutch league, Boeing always favorites to win aircraft contract.
Predictable means less volatility, and lower price spread. However the large markets means consistent titles and profits and dividends.
So how can one trade in Value Stocks?
Well you wait for bad news, like Ajax losing a game, or striker, that short term news means they may not win the league..
So price falls.
Value remains, Ajax Stadiums are still full even if they lose a game.
So buy when prices fall...
When short-term traders sell a good value stock on short-term news, you buy because Value is still up.
However, if Super League is created that a long-term Value disruptor that means long-term earning revaluation, you can sell capture value today.
The key to these is to calculate intrinsic value.
What is that mango tree worth?
Its fruits? Its wood? Its shade? Its cost of seeds?
All are correct, so intrinsic value is based on your own estimates of future return.
Not easy.
Hope this helps....
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