In this video, I will go over 3 signs that a stock is a value trap. It is important for value investors to avoid value traps. A value trap is a stock that appears to be undervalued, but it is cheap for a reason. The key to value investing is deciding if a stock is cheap due to unreasonable investor pessimism or if a stock is cheap because the company is having problems. There are many signs that a stock is a value trap, but these are the top 3 signs that I look at when determining if a stock is a value trap.

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These videos are meant for entertainment purposes, and are not to be taken as investing advice.

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