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Re: U.S. companies are valued less now than before Trump was elected 

By: micro in BAF | Recommend this post (2)
Tue, 10 Apr 18 5:46 PM | 146 view(s)
Boardmark this board | Bash-a-Farter 		Msg. 02118 of 06530
(This msg. is a reply to 02115 by Decomposed)
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De

One other way to decrease the "market value" b y using the traditional method of valuation you just described,

is for a company to BUY BACK it's outstanding shares from the marketplace.

Hence one has less shares outstanding to multiply by the current share price. So maybe its possible that many companies are actually buying back some of their outstanding shares, which also gives them greater control of the company as well.

BTW,

HOW ya doing? Tired, worn out, wishing you had someone half your age to do the lifting????? LOL!!!!

Know the feeling... Well.... THAT is why it is good for everyone to own a son in law or two... And have grandsons who are teens, or in your case, a SON period.

I have no sons. SO I have son in laws...

Welcome back and glad to see you made it safely..... Very Happy




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The above is a reply to the following message:
U.S. companies are valued less now than before Trump was elected
By: Decomposed in BAF
Tue, 10 Apr 18 3:29 PM 		Msg. 02115 of 06530

Re: "U.S. companies are valued less now than before Trump was elected, despite the run-up in stocks, big corporate tax cuts, reductions in regulations and booming earnings."
- clo #msg-1036797  

I sure wish someone would explain THAT little gem to me.

Given that "Market Cap" is the best tool I know for discerning a public company's value, and market cap is defined as the stock price times the number of outstanding shares, it's difficult to imagine that the author is correct. Sure, if companies are elevating their stock prices through reverse splits or other accounting tricks, he'd be right, but there's no way that's happening on a grand enough scale to elevate the entire stock market...

Unfortunately, no one on Pfffft3 questions things like this. In fact, I sometimes doubt that anyone on Pfffft3 actually reads clo's articles. Does clo herself read them? If she did, you'd think she would question them on her own.

I'm afraid we will never know.

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