Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (62315)	8/3/2019 11:29:55 AM
From: bruwin	Respond to of 78751

You could very well be correct in your assessments as to what is affecting WMB's share price. Those aspects that you mention can cause variations in the Top Line Revenue of WMB. There could also be other aspects that could affect other areas of WMB's Income Statement, resulting in the final end result as shown in the company's Net Income number. That, at least, tells one something tangible about the actual 'financial' performance of the company and how that affects its Balance Sheet via the company's Retained Income number. My query is more directed at the use of a Ratio that incorporates a Share Price in its calculation because that can cause large variations in the final result as one can see with what has happened to WMB over short, successive periods of time. Therefore my questions are, "How relevant is such a ratio ?" .... "What is it, in fact, telling you ?" ..... "Is it reasonable to conclude that the "sale price" of this company can vary up or down by 13% to 14% in only 5 months, etc .... Relatively speaking, in Jan 2017 its sale price is $47.5 billion. 3 months later in Apr 2017 its sale price is down to $39.4 billion. 4 Months later, in Aug 2018, its sale price is up to $46.6 billion,etc .. ?" I don't know about you, but even if my input numbers are not 100% spot on, that still doesn't sound very realistic to me ......

To: E_K_S who wrote (62315)	8/3/2019 1:17:49 PM
From: Spekulatius	1 Recommendation Recommended By E_K_S Respond to of 78751

The energy prices (crude and Ng) affect the sentiment, but not WMB’s bottom line much. WMB revenues are FRE based, even in the gathering segment and there almost no impact on their income statements. The only impact is if the E&P’s connected to WMB gathering system stop producing. The larger pipes are under long term contracts , often with the consumers, so lower throughout would tear a long time until it shows in WMB’s bottom line. This is simply an utility like business.