Sentences with phrase «value of a stock because»

Not exact matches

Because the performance - based stock grants also aren't worth anything until Valeant stock hits $ 60, the current value of Papa's paycheck last year is much lower, or about $ 14.7 million.

Battered by nearly a year of off - and - on declines from record highs because of fears of a slowdown in iPhone sales, Apple «s stock now is valued closer to IBM, which has disappointed Wall Street for the past four years with declining revenue, than to Silicon Valley technology pioneers Alphabet and Tesla Motors.

«Because we are in the hospitality and recreation business, which is largely dependent on discretionary spending,» the company's latest financial report explains, «we believe that the weak housing market, increases in unemployment, decreases in air flights to Las Vegas, decreases in the value of stock and other investments, and the general tightening of spending on business travel have all affected visitations to Las Vegas and the spending budget of our customers.»

One wrinkle is that an employee would need to receive more phantom stock relative to direct ownership to get the same amount of equity compensation because they are not receiving the underlying value of the stock.

Bill Miller, the famed value investor who manages the Miller Opportunity Trust mutual fund and holds 16 % of its portfolio in airline stocks, imagines a new normal in which airlines remain profitable during slumps because of their newfound discipline on capacity.

Simply put, a deal that offers participating preferred stock creates a lower implied valuation for your business than a plain vanilla term sheet with no participation feature, because the investors will end up with a disporportionately higher piece of the value created.

And cracks have begun to appear north of the 49th parallel; GMP Securities analyst Michael Urlocker downgraded Research In Motion on April 21, saying it «risked becoming a value trap — a stock that looks cheap but isn't because its prospects are diminishing.»

I pointed out, among other things, that a large portion of Tesla shareholders own the stock because they believe in Musk's mission, i.e., part of their value comes from the idealistic goals.

In an investment letter on Friday, Healy wrote that he continues to like the potential of some gold stocks particularly because they have lagged behind the value of the price of bullion.

Because PE is a measure of earnings over time, you can think of it as representing the number of years required to pay back a stock's purchase price (ignoring inflation, earnings growth and the time value of money).

Here's the good stuff: Instead of having to pay a 55 % estate or gift tax on the 30 % stock transfer, the child pays much less because, the IRS says, the GRAT diminishes the value of the stock.

While some shareholders argue that Dell's stock will continue to go up if the company remains public because investors are realizing the value of the company, Niles said that he only sees the stock declining if shareholders refuse Dell's offer.

It was, in fact, the ultimate value stock because the discounted present value of the actual, real future cash earnings was far greater than the stock price at the time.

Tesla's market value officially outpaces Ford because of the record vehicle deliveries in Q1 of 2017, with the electric car maker's stock bordering on $ 300.

That's because the main goal of stock investments is to increase in value.

Because our stock is not publicly traded, we must estimate the fair value of common stock, as discussed in «Common Stock Valuations» bstock is not publicly traded, we must estimate the fair value of common stock, as discussed in «Common Stock Valuations» bstock, as discussed in «Common Stock Valuations» bStock Valuations» below.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

So if you drew a horizontal line and call that fair value like Ben Graham said, and then you draw a wavy line around that horizontal line and call that stock prices, the market is pitching us opportunities all the time between stocks that are way below fair value and way above fair value, the reason investors don't beat the market has nothing to do with the market is not throwing us pitches in that it's not still emotional, they are behavioral problem, there's agency problems, there is a lot of other issues going on but it's not because we're not getting really great pictures all the time.

Much of the reason that PBR's stock still has as much value as it does is because investors are assuming that the company will be bailed out by Brazil if it's problems become too severe.

The issue is very simple: U.S. wealth is overstated because the prices of stocks, bonds (particularly corporate), even real estate, are excessive in relation to the replacement value of the underlying assets, and the income streams that are derived from them.

Jonathan Horton of Perth - based «fund - of - funds» NWQ points out that 2016 was notable because it delivered the lowest «price dispersion» between high - growth, high - quality stocks and deep - value stocks with lower quality balance sheets.

So let's say that Susan thinks that XYZ Company stock is going to lose value over the next year because of negative reviews and high prices.

:) Right now I'm saving about 80 - 90 % of my active income and put it toward ETF funds and value growth stocks because I'm seeking capital appreciation.

«First, companies who believe their stock is undervalued, often because they have a few distinct businesses within their company, can spin off a division and unlock some of the part's value.

Companies like to use EPS as a performance metric because it is the primary focus of financial analysts when assessing the value of a stock and of investors when evaluating their return on investment.

When the stock price plummets because your company underperforms, and you subsequently feel you have to grant a lot more to remain competitive, and then your stock price recovers, your CEO will end up with a lot more award value than the CEO of a competitor whose firm's stock price dropped much less, before also recovering.

Because there is no public market for our common stock, our board of directors determined the common stock fair value at the stock option grant date by considering several objective and subjective factors, including the price paid by investors for our preferred stock, our actual and forecasted operating and financial performance, market conditions and performance of comparable publicly traded companies, developments and milestones in our company, the rights and preferences of our common and preferred stock, the likelihood of achieving a liquidity event, and transactions involving our preferred stock.

This is lower volatility than many other stocks in percentage terms, but because of the high stock price (absolute, not a reflection of value) the moves are large in absolute dollar terms.

One would think that land prices would play a central role in business cycle analysis, if only because a large share of stock market values consists of corporately owned real estate.

That's not the whole story, however, because incredible as it may seem iPhone 5 sales figures in the last three quarters were lower than what Wall Street expected causing massive fluctuations in the value of Apple's shares in the stock market.

However, for stock market companies, simply creating new shares or issuing stock options by fiat that are given away to employees without the company selling them at full value, existing shareholders would experience an economic dilution in profits (dividends) per share going down because of a larger number of shares and, importantly, in economic value, being given away (shares of the company are literally being simply granted to someone else, namely employees).

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.

An article about how traditional active stock management is dying because computers are better and cheaper, cites a simple quantitative value strategy compiled by Kenneth French, the Roth Family Distinguished Professor of Finance.

That's because there's a margin of safety, or a buffer, that's often built right in when you buy a dividend growth stock that's undervalued, as that favorable gap between price and value also means there's less of a possibility that the stock becomes worth less than you paid through some kind of negative event (corporate malfeasance, investor mistake, etc.).

In a market correction, investors who have no clue as to why they own stocks [outside of «because they have / and will continue to go up»] or what the intrinsic value of the stocks they own are, use price as their guide in decision making.

The evaluation of the fair value of stock is important because the higher the fair value is over the market value the...

Adding that Snap's shares can lose 7 % of their value just because Kylie Jenner sends out a tweet putting down the Snapchat app, it becomes crystal clear why I'm keeping far away from this social - media stock.

That's because financial assets include both stocks and bonds, while the red line features outcomes for stocks alone, so unlike measures like market capitalization to corporate gross value added, the chart below has a bit of «apples and oranges» at work.

We recommend investors buy a Consumer Staples ETF over a Financials ETF because the Consumer Staples sector allocates 73 % of the value to Attractive - or - better - rated stocks compared to 21 % for the Financials sector.

And because it is growing — even during recessions — it is always dragging the fair value of the stock forward.

They're moved by daily prices, but «the value of America doesn't drop 3 percent in a day because the stock market does.

Likewise, if investors think that the company will not perform as well in the future as it does now, the perceived value of the stock will fall because fewer investors will place orders to buy the stock.

I developed the price / peak - earnings ratio because it filters out the uninformative volatility of earnings during recessions, and provides a more useful framework to talk about stock values.

Covering up the error did not look like too bad an option at the time because stocks were priced at one - half of their fair value and so it was hard for anyone to imagine that prices could ever again rise even to fair - value levels much less to overpriced levels.

If so, it will be because we overestimated the cashflows that they can generate, not because we blindly walked into a trap of buying every stock trading at a low multiple of book value.

Because even the most carefully - managed banks can not perfectly control or predict the value of their net dues at the end of any particular settlement period, all would tend to equip themselves with a modest cushion of cash reserves even if they did not have to do so for the sake of stocking their ATM's or accommodating their customers» over-the-counter requests for cash.

When we suggested US Bancorp (NASDAQ: USB) to Squawk Box as our favorite large cap, that was because of the operational excellence as opposed to the stock price, which trades above 2x book value.

Correspondingly, a stock that sells well below intrinsic value should be repurchased whether or not stock has previously been issued (or may be because of outstanding options).

The reason I say that was my worst mistake of omission is because the only reason I passed on that stock is because I had read too many value investing books, thought too much about the right multiples for a stock, wrote about value investing, talked with other value investors, etc..

Even though most of these funds use the equally - weighted approach in building their investment themes of Value, Momentum and Quality, because of the different inputs, the stock selection will be very different.