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Politics : A Real American President: Donald Trump

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GUNSNGOLD
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To: GUNSNGOLD who wrote (314546)11/3/2021 9:04:30 PM
From: Thehammer2 Recommendations   of 456385
 
As I said ordinally, I don't know the accounting function but I doubt this will happen in real life.

You have hedge funds / mergers and acquisitions dudes who are running data scripts looking for companies trading at low valuations with considerable asset (not just cash) exceeding market value.

Then they spring.

Buying programs tend to push market value higher so at some point it becomes unprofitable.

There is a thread here for biotech trading for less than cash on books, They are not profitable and burning through their cash. I assume someone could make a tender for them and try to sell of the assets / intellectual property. I don't recall seeing that happen.

There are also SEC rules governing disclosures after a firm starts accumulating stock. Corporations have to disclose buybacks. The market will react to those actions in the same way markets tend to rise in front of tender offers announcement.

If someone asks me how many angels can dance on the head of a pin, I will pass.....
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