The speculator will drive prices to extremes, while the investor (who generally sells when the speculator buys and buys when the speculator sells) evens out the market, so over the long run,
stock prices reflect the underlying value of the companies.
No one needs to be told that
the stock price reflects enormous growth expectations, but it's worth quantifying how unrealistic those expectations really are.
Growth
stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections.
Despite the world's tragedies and problems, many businesses continue to add value, and increasing
stock prices reflect this reality.
They've been able to successfully lower costs and improve their operating ratio over the past decade to become one of the most efficient railroads in North America, and
their stock price reflects this.
Companies and sectors that are struggling are just as easy to identify, and their (lower)
stock prices reflect this, too.
Part three of the book provides empirical evidence of why
stock prices reflect long - term value creation as described in the book.
Equity Schemes Our investment philosophy for equity - oriented investments is based on the belief that over time
stock prices reflect their intrinsic values.
Efficient Market Hypothesis (EMH) said that
stock prices reflect all known information and there is no way for someone to make more money than the overall stock market returns consistently.
The stock price reflects this: AVGN closed yesterday at $ 1.34, up 106.2 % from our $ 0.65 purchase price.
Essentially, it says that
stock prices reflect all current information, and react quickly to new information.
Not exact matches
Berkshire Hathaway «s (brk - b)
stock price touched $ 300,000 for the first time on Monday,
reflecting investors» confidence in Warren Buffett «s conglomerate despite four straight quarters of lower operating profit.
Important factors that could cause actual results to differ materially from those
reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future
pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase
price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated
stock repurchase plan, among other things.
Then, when Zynga officials presented its second - quarter earnings report on July 25, in which the company lowered its outlook «to
reflect delays in launching new games, a faster decline in existing Web games due in part to a more challenging environment on the Facebook Web platform, and reduced expectations for Draw Something,» the company's
stock price plunged, falling some 35 percent overnight.
Update: This story has been updated to
reflect eBay's earnings report and its closing
stock price on Wednesday, July 17, 2013.
The
stock has traded above the original offer
price for nearly seven months,
reflecting expectations among investors that the offer would be raised.
The roller coaster ride taken by the company's
stock price seems to
reflect the incredibly varied opinions on Netflix.
The reason, according to Martin, is rooted in the fact that
stock prices only
reflect the market's collective expectations about a company's future performance.
All of this Sturm und Drang has been
reflected in the company's
stock price.
And I am not quite sure that this is fully
reflected in the way that a lot of
stock prices are in there,» he told CNBC
The
pricing and high demand
reflect what Wall Street's top investment firms think about the
stock, and telegraphs how the year's most anticipated IPO might fare in the public market.
«The
stock prices are still not
reflecting the earnings power that's likely to show up here in this quarter and for the year as a whole,» said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management, which has been overweight the energy sector.
Yellen said asset valuations including
stock prices in part
reflect expectations that the Fed will normalize rates faster than other central banks.
«You're going to see that
reflected in the
stock prices today,» he said.
Just because a
stock rises in
price, investors should not believe that it
reflects a company's appropriate value.
I don't really care if a company decides to issue a dividend or not; presumably, if they don't issue a dividend, then they're doing other things to increase the value of the company, which will be
reflected in the
stock price of the company.
The weighted - average exercise
price is calculated based solely on the exercise
prices of the outstanding
stock options and does not
reflect the shares that will be issued upon the vesting of outstanding awards of RSUs, which have no exercise
price.
In no case, except due to an adjustment to
reflect a
stock split or other event referred to under «Adjustments» below, and except for any repricing that may be approved by shareholders, will the plan administrator (1) amend an outstanding
stock option or
stock appreciation right to reduce the exercise
price or base
price of the award, (2) cancel, exchange, or surrender an outstanding
stock option or
stock appreciation right in exchange for cash or other awards for the purpose of repricing the award, (3) cancel, exchange, or surrender an outstanding
stock option or
stock appreciation right in exchange for an option or
stock appreciation right with an exercise or base
price that is less than the exercise or base
price of the original award, or (4) take any other action that is treated as a repricing under U.S. generally accepted accounting principles.
Right now with earnings growth very strong and the bond market already
reflecting a fair amount of Fed tightening (
pricing in 5 rate hikes over the coming 2 years), my sense is that the
stock market is in OK shape to withstand some tightening of financial conditions and not unravel in the process.
«Parent Trading
Price» shall mean the average closing sales price of one (1) share of Parent Common Stock as reported on the New York Stock Exchange for the ten (10) consecutive trading days ending on the date that is two (2) trading days immediately preceding the Closing Date (as adjusted as appropriate to reflect any stock splits, stock dividends, combinations, reorganizations, reclassifications or similar eve
Price» shall mean the average closing sales
price of one (1) share of Parent Common Stock as reported on the New York Stock Exchange for the ten (10) consecutive trading days ending on the date that is two (2) trading days immediately preceding the Closing Date (as adjusted as appropriate to reflect any stock splits, stock dividends, combinations, reorganizations, reclassifications or similar eve
price of one (1) share of Parent Common
Stock as reported on the New York Stock Exchange for the ten (10) consecutive trading days ending on the date that is two (2) trading days immediately preceding the Closing Date (as adjusted as appropriate to reflect any stock splits, stock dividends, combinations, reorganizations, reclassifications or similar eve
Stock as reported on the New York
Stock Exchange for the ten (10) consecutive trading days ending on the date that is two (2) trading days immediately preceding the Closing Date (as adjusted as appropriate to reflect any stock splits, stock dividends, combinations, reorganizations, reclassifications or similar eve
Stock Exchange for the ten (10) consecutive trading days ending on the date that is two (2) trading days immediately preceding the Closing Date (as adjusted as appropriate to
reflect any
stock splits, stock dividends, combinations, reorganizations, reclassifications or similar eve
stock splits,
stock dividends, combinations, reorganizations, reclassifications or similar eve
stock dividends, combinations, reorganizations, reclassifications or similar events).
Over time, the failure to achieve first - mover status becomes evident and valuations adjust to
reflect this, or lock - up provisions on Internet
stocks expire, leading to a large increase in supply that leads to a sharp fall in
prices.7
Price - earnings multiples (P / E)
reflect the ratio of
stock prices to per - share common earnings.
At the start of the sustained rise in equity
prices,
stock dividend yields exceeded the yields on Treasury bonds and this was perceived as normal, partly
reflecting the searing experience of the Great Depression.
ETFs are subject to risks similar to those of
stocks and trading
prices may not
reflect the actual net asset value of the underlying securities.
The Board or the HRC or the GNC may modify, suspend, or terminate the LTICP but may not, without the prior approval of our stockholders, make any change to the LTICP that increases the total amount of common
stock which may be awarded (except to
reflect changes in capitalization), increases the individual maximum award limits (except to
reflect changes in capitalization), changes the class of team members or directors eligible to participate, extends the duration of the LTICP, reduces the exercise
price of or reprices outstanding
stock options or
stock appreciation rights, waives the LTICP's minimum time period requirements for vesting and lapse of restrictions for restricted
stock or RSRs, or otherwise amends the LTICP in any manner requiring stockholder approval by law or under the NYSE listing requirements.
Now, over 20 years later, the company's success was
reflected in the
stock market with a milestone share
price.
All the pessimism surrounding these underperforming
stock markets drove
prices down to levels where most of the risk was already
reflected.
On the contrary, I am most interested in the relative certainty offered by companies that many characterize as «Steady Eddies,» particularly in the health care, software, and branded retail sectors where the
stock prices may not
reflect the companies» intrinsic value.
After the election of President Trump, the consensus was that his rhetoric, unpredictability, and disdain for convention would be
reflected in more volatile
stock prices.
If the institution is able to effect a change in corporate policy, its ten shares will produce a $ 100 paper gain when the
stock price rises to
reflect the company's new value.
Thus now the
stock price already
reflected that.
This gain
reflects continued increases in housing wealth due to rising house
prices in many areas of the country, as well as steady gains in the
stock market.
Moving averages — Moving averages
reflect the recent
price history of an index or
stock.
Any purchases of
stock substantially above this
price or sales substantially below this
price constitute mispricing as they do not
reflect the fundamental
stock value, to which the market tends to return in the long run.
In no case (except due to an adjustment to
reflect a
stock split or other event referred to under «Adjustments» below, and except for any repricing that may be approved by shareholders) will the plan administrator (1) amend an outstanding
stock option or
stock appreciation right to reduce the exercise
price or base
price of the award, (2) cancel, exchange, or surrender an outstanding
stock option or
stock appreciation right in exchange for cash or other awards for the purpose of repricing the award, or (3) cancel, exchange, or surrender an outstanding
stock option or
stock appreciation right in exchange for an option or
stock appreciation right with an exercise or base
price that is less than the exercise or base
price of the original award.
This
price will not necessarily
reflect the
price at which investors in the market will be willing to buy and sell shares of our common
stock following this offering.
Assuming a $ 0.50 change in the Company's common
stock value, the estimated purchase
price would increase or decrease by approximately $ 4.9 million, which would be
reflected in these unaudited pro forma condensed combined financial statements as an increase or decrease to goodwill.
Details — Moonves, 65, was paid the same base salary he received in 2013, $ 3.5 million, but his
stock awards in 2014 were $ 12 million less,
reflecting the drop in the company's share
price.
The aggregate estimated purchase
price of $ 62.2 million
reflected in these unaudited pro forma condensed combined financial statements is based on the valuation of the Company's common
stock as of March 31, 2010, which was $ 5.27 per share.
As a result of the distribution, HP Co. expects the trading
price of HP Inc. common
stock immediately following the distribution to be lower than the «regular - way» trading
price of such common
stock immediately prior to the distribution because the trading
price will no longer
reflect the value of the businesses held by Hewlett Packard Enterprise.