[ale] OT: corporate finance 101

[Geoffrey]

James P. Kinney III wrote:

> On Tue, 2002-01-22 at 08:42, Geoffrey wrote:
> 
>>Chris Farris wrote:
>>
>>
>>
> 
>>I'm not saying that the CEO should lie.  My concern is that the life 
>>blood of many companies (stock) is in the hands of a lot of impatient, 
>>and often times ignorant people.
>>
> 
> I don't see the stock prices as being the lifeblood of a company unless
> it is being sold by the company as IPO or new release. I have always
> viewed the lifeblood of the company as being the people with the talent
> to do the things that bring in the cash. Cash is the food, people are
> the lifeblood. Investors are like MiracleGrow fertilizer.


This is the way it should be.  Unfortunately, let the stock of any 
company drop in the toilet, and it doesn't matter how good your people 
are, or even how much cash you have on hand.  You're out of business. 
The problem is, stock value is too well tied to the whims of the 
buying/selling public.

Stock is the value of the company.  If your stock drops, you're likely 
to be picked up by another company, if you've got anything worth buying. 
  If not, you're out of business.  Too many people see the stock in a 
company take a dive, and end up feeding the flames by selling.



-- 
Until later: Geoffrey		esoteric at 3times25.net

"...the system (Microsoft passport) carries significant risks to users that
are not made adequately clear in the technical documentation available."
- David P. Kormann and Aviel D. Rubin, AT&T Labs - Research
- http://www.avirubin.com/passport.html


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