Why record sales numbers don’t move stocks in the short term. Because people look at the previous 12 months revenue. Sales do not equal revenue. So there is a long time factor involved in valuations being recognized as share price. .
With recent drops and all the FUD, why would the price move on sales when no one believes it. Well, I say no one, and clearly I don’t mean that. I mean there are specific ones that don’t believe and don’t even know how to factor in the impact of a sales number. And I dare say many people don’t even know how to tell what a company should be valued at if there was no hype, no drama, and no emotion.
There are no real shoulds. I say it “should” be XYZ price and what I really mean is that I believe there is justification for a certain price based on return on investment and how it could be possible to have the price appreciate over time so that we get back more than we put in at a good return.
if there were such a thing as a goose that laid a golden egg, and you wanted to sell it and then there were others who had other birds laying golden eggs, how would you decide how much to sell the goose for? It’s not the only bird laying golden eggs. But maybe your goose lays an egg monthly. But it might eat a lot. How would you know the value of the goose. If you knew it laid an egg before and now it is laying eggs faster… if the first time it laid an egg after a week and you wanted to sell it, what would a buyer ask? Well over the last 6 months how many eggs has it laid. And you say well, 6 but it just laid number 7 which is a lot faster, so buy it from me at the weekly rate of laying eggs. As a buyer, would you immediately jump on that?
But let’s say your neighbor was able to talk him into selling it for just a little more, and he started reporting it was laying eggs weekly. How many weeks before people believe?
That’s what we have. We have a goose laying golden eggs. And people don’t want to buy it.
