More nonsense and misinformation? Why, yes it is. How about some facts?
While I believe we did this before, I recognize repetition is the mother’s milk of learning. So let’s do this again…here are the two most important matters of recent note that the CEO has enabled – successful submittal to the FDA and their granting priority review to Elite, something that requires knowledge, diligence, and attentiveness by the CEO. Then we have peer reviewed research paper that will be presented within the next 1-3 days; which reflects not only the validity but the veracity of the claims of the significance of Elite’s tech. Here are the links...
Then there is the nonsense and misinformation about the CEO having the responsibility to increase the p/s. The CEO is to develop a business in fundamental ways that, over the longer term, when the strategies that have been put in place yield the desired results (as noted in the above), we see a subsequent and corresponding increase in the p/s. And, as Elite awaits what seems will be an FDA approval, why should shareholders of note be concerned with the narrow trading range? It does not reflect nor portend the future. Having worked in big business, I can assure readers of the truth of that statement.
However, it is worth making another point and that is, while we certainly recognize some CEO’s do seek to increase p/s, it is when they have little or no growth prospects in the near term. How do they do it? Financial engineering = share repurchases. Perhaps you should check out the McKinsey article in April 2016 by Ezeynke, Koller, & Mittal. That is, if you want to be educated on the real benefits of buybacks. Hint, hint…it is not about shareholders.
But, I digress. Here are other links to CEO responsibilities (I know how much reading can be cumbersome and problematic, but it really is how we are educated, if we choose to be)...and, the links make it clear that no one places improving p/s in the list. As anyone who reads the below would attest…
http://www.clevelenterprises.com/articles/68_ceo_responsibilities.htm The list of 68 responsibilities is interesting. While there are responsibilities related to investor relations and shareholders, #64-65-66 talk about communication, lists of shareholders, and review of stock options. Nothing mentioned there or in any other section about improving the p/s.
http://work.chron.com/job-functions-ceo-14238.html Still no mention of increasing p/s. In fact, no mention of that at all. It seems the discussions in all the above are about strategic positioning for success. Something I have consistently stated is what we investors should expect and what Nasrat Hakim is providing. IMHO, that is obvious. But I am not your average business investor. If you do not believe me, what about the words of actual CEOs?
While shareholders are a concern, no one says they are supposed to increase p/s. Rather, it remains that CEOs believe what the literature is clear about, that CEOs are to strategically improve the financial performance of the company - NOT the p/s.
As has been stated many times and it was a major point made by Peter Lynch – good financial performance will be followed by an increasing p/s. Unlike addition and multiplication, the two are not commutative. First it is the former - financial performance, then it is the latter - improved p/s. Effective financial performance is a duty; improved p/s its outcome. The literature is quite clear and it could not be otherwise.
Gee I've heard the same exact BS since the .06's and it keeps climbing. And it will continue to climb on Eli 200 approval. That's right FOLKS Eli 200 is coming and nobody is going to stop it. NOBODY
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