|reply to scavio |
Re: Not transparent, but necessary
Leaders of companies are set on raising stock price. Profitablity has no gaurantee of doing that since it is not linked ot stock price. Stock price can easily go down even when profits go up.
They play games of press releases, buy backs, issuing new stock, dividends, buying companies, selling divisions, investing in new equipment. Those are things they do to trying and get people to make decisions.
In reality the only thing they can do to directly affect their price is issuing stock or buying it back. Anything else is just wishful thinking or playing the gambling game.
Please stop with your misinformation.
I don't know why you dredged this up from so long ago. I started to type a long winded post but decided it's not worth it.
I'm done arguing about this. Technically, a stock is worth what someone is willing to pay for it. If you think that how much a company makes and is expected to make in the future (per share of course) has nothing to do with how much people think it's worth, then I feel sorry for you.
I'm not going to go through the ins and outs of it all. I'll leave you with this headline: Netflix Jumps On Earnings, Guidance Beat »www.thestreet.com/story/11384675···eat.html . Earnings were released, profits and future guidance on profits beat expectations, and the stock went up 10%. I'm done.