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Sunday, November 12, 2023 10:37:41 AM
I suggest not buying and selling
or - maybe - better said --- the buying and selling is based on an expected future earnings --- amount and when
the PPS - plus or minus greed or fear is all done by 10000 models that estimate earnings per year - out say 10 years for a company and then the stream of earnings is discounted to the present. Fancy name is NPS of future earnings
YES - that is what drives price
For example a growth company might be valued at earnings per year of 2 4 9 19 ----- so what if the expectations change due to earnings and management guidance to 2 4 5 8 ---- wow that stock will take a hit
or - maybe - better said --- the buying and selling is based on an expected future earnings --- amount and when
the PPS - plus or minus greed or fear is all done by 10000 models that estimate earnings per year - out say 10 years for a company and then the stream of earnings is discounted to the present. Fancy name is NPS of future earnings
YES - that is what drives price
For example a growth company might be valued at earnings per year of 2 4 9 19 ----- so what if the expectations change due to earnings and management guidance to 2 4 5 8 ---- wow that stock will take a hit
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