I've been reading Jim Cramers book (Real Money) lately and its pretty good, he talks a lot about how speculation is a good thing, because that's where you make the biggest gains. The "mechanical" way that he describes that most people use is measure the P/E ratio to the EPS, and measure that against either a competitor's stock or an index like the S&P 500. That's how you would determine if a stock is undervalued or overvalued.
It seems hard to find stocks that are under or over valued, but that's what makes it fun. You get to research them and try to figure out if they are about to make a move or plummet.
And with regards to Brutha, it would be just stupid if your portfolio was made up of only a couple speculative stocks. The point of the game isn't to win, it's to learn more about the market, what makes it tick, and to share this info with everyone else. That's my goal anyway. I want to in a few years start to put some real money in the market, but I have everything to learn still.
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