NewAge Inc (fka NBEVQ) (NBEVQ)

[Roland Rick Perry]

Jack Welch.

I put this up on SA because it's contrary to logic, to imply or infer that an enthusiastic CEO is doing something inherently wrong.

To paraphrase Jack Welch.

"I don't think my stock can ever get overvalued. Let me explain why. My whole modus operandi, my whole business approach is to hire the best managers and train them to make sure that I have the best managers in all of business. And that means if my stock gets above what I think is fair value, I will use that currency to buy a company with lesser skills at the management level and install my managers thereby increasing the value of General Electric. That's my business plan. It's worked for me for 20 years.."

I've worked with CEO's who trumpet their progress and I've worked with CEO's who believe if they just put their nose to the grindstone, the share price will take care of itself.

The approach the CEO takes (with exceptions of course) is one of the leading indicators as to whether a company may in the future, trade at a premium valuation, or trade at a discount to market or its peers.

There's nothing inherently evil about having an overvalued stock price - using whatever metric one uses, to make such a declaration.