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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Don Lloyd who wrote (16456)8/10/2002 12:05:52 AM
From: SOROS  Read Replies (1) of 42834
 
"They have exactly the same liquidation value for either selling their shares or for the company itself being liquidated."

You may want to check "liquidation value" versus "market cap" for just about every company. That will show the true lunacy being exhibited in those buying this market because it is now "value" or "near a bottom." I can't believe they keep parading analyst after analyst on the TV telling the average investor that the markets are now "value." By just about every traditional measure, this market is about as overvalued as it has ever been. Only by "comparison" with stock "prices" of 2-3 years ago does this value statement make any sense --- and it only makes sense to an idiot or someone who is paid to part an idiot with their money (aka analyst).

"Alternately, the company can execute a reverse split to lower the number of outstanding shares." -- Tell me this is not robbery of shareholders in the practical.

"Still more alternately, the shareholders no longer have to worry about the company doing dumb things with that $100,000." -- If the "smartest" thing a company can do to grow their business is buy back shares, I'd say it is not a company that can be trusted. IMO, unlike the talking paid shills on TV who say Enron, WCOM, TYCO, etc. are only a tiny minority of the crooks, I'd guess it is more like 80% have done versions of the very same things -- they have just not been caught yet.

I remain,

SOROS
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