I AGREE - SS with your post.... and - Many companies have shares out - in the numerous -
And many companies well over the dollar status - are doing well.
Im not an advocate of the infamous - con - solo - (pun intended)
I've always liked the idea - forge forward - regardless of shares out - hey - its what listed companies do - and as so - its the idealogy of retraining investors to better think the conversion of shares - and what the shares bought - and that means - having investors not focus moreso on the shares out - but rather - focus on the assets the shares captured.
In time - its the ability of the company - to advance and grow - and over time - counter the shares out - via more assets and earnings - which hopefully grow greater in value - to counter the shares out - and thus - rises the share price -
Secondly - i would like to see a formula devised - that treats listed companies with a fairness - if shares are used to merely keep the company afloat - then use the shares against the share price in a negative conotation
if shares were used to grow the company in assets - especially assets that are generating revenues - from the immedfiate- then why not do a cancellation formula - ????
A formula that considers the shares in light of they attained assets - and are generating captial - and if such a stage is achieved - perhaps using an entirely new formula that cancels the shares - for sake - of arriving at a price valuation. Of course the shares are still accounted for -
purposes of trading -
so if a company used 100 milliojn shares - and had say..... 5 share offering dispersments -
1 - 30 mil to begin the company and pay staff
2 - 50 mil to acquire an asset - to advance the company
3 - 20 mil 1 yr down the road - to use again for management to compensate whiel the revenues generate
In such a formula - 50 mil shares would be deducted in a ghost shadow manner - still there for trading purposes but deducted for valuation purposes - and only in light of - upon the company reaching a status of generating revenues - this criterias would have to be met first - before such shares would be considered under a new formula - that allows a portion of the shares out - to be cancelled out - only for valuation purposes - allowing for a better formula valuation - that treats such shares that acquired assets that generate revenues - in a nuetral status. And why not ? The shares used bought something - i fond many traders lose sight of this fact and graviate right back to ----- oh but they have this amiount of shares out ? Is thatfair ? Does that take the focus off the assets ? Doesit make it a fair valuation to just look at the shares and compare to profits ? What about the assets ? Why not a formula of shares + assets + profits ?
Why not cancel out xxx amount of shares to compensate for the asset value - then come up with a valuation price ?
Just ideas.... Hey... i'm new to stocks - and perhaps the ole system should bwe revamped along with a few more things i've noticed....
Like ..... I often wonder what it would be like if the markets were different - imagining what trading would be like if waking each morning - and say if.... a commodity price moved - or a currency changed - or other - and xxx company had no news pressed out - but since an outside fsctor changed - what if - the companies stock who're associate to such a sector - what if theri stocks moved accordingly ? I see a big disconnect on many stocks...
NOW WHY CAN'T ALL STOCKS MOVE AS SO ?
ALL STOCKS ACROSS THE BOARD ?
i THINK THE TIME FRAMES IN WHICH IT TAKES STOCKS TO MOVE - IS REDICULOUS - THERE'S FAR TOO MUCH DOWN TIME INBETWEEN THE NEWS - AND IF THERE'S LESS NEWS - THE SHARKS COME IN TO PLACE FEAR - AND WE ALL KNOW WHAT HAPPENS TO A STOCK WITH HARDLY ANY NEWS - GRRRR !
Its like the odds are unbalanced - for the long trader. Long traders -supportthe company's on the exchange - and such a support is pro economy - wanting the comapny to do well - such a support is in favor of growth and the supply of jobs and all the good spin offs - that are the result of wanting a company to prosper - Its what investing is all about - its not about - seeking out injured companies and looking for a quick buck.
Now imagine - if such a system were implemented - stocks moving without any material news press from the company - all based on outside factors - commodity influxes - regional or country factors - currency influxes - over all industry changes - ask yoursefl - would this not be better ?
I think it would... especially waking each moring and wondering if the stock moved - on outside forces... vs - wainting out each quarter and praying like a wild angel for the company to press news -and with each day that passes with no news - the stock goes down ?
There has got to be a bettwr way.... a better system - a system that helps the companies that are listed during their no news down time -
It's not inconcievable to think - that just maybe the markets and system is not up to date with their hardware ? I don't know if they are - but most companeis that are huge - are usually the last to change over or update their systems - and what if ? What if its a situation of the markets have not been updated to meet the standards of what should be ?
And that being -having all stocks move by a computer program that regulates all stocks - based on outside ofrces and market trends? Just look at how many companies are listed now vs say - 20 years ago ?
There are so manylisted companies.... and the more that are - the harder it is for a trader to know of theese listed companies.... and its a case of hit and miss- god forbid a trader picks a stock that no one knows about - or has no bullboard - meaning - no interest - no movement in sotck... its maybe considered a lemon... But is it really ? Or is it a case of n one knows about the business - and if no one knows about it - how can the company get known in order to do share offerings... ? So if all stocks moved with a program - an unbiased and fair program - then it would be far easier for an investor to invest with a sort of assurance built in - that no matter the stock - some sort of outside influence would or could move the stock other than the company news.
Would suchj a system make a difference ? I think it would.... and for all parties....
If a system was devised that moved all sectors and all stocks - aside of material news- i think it would invigorate the markets like never before.... It would b a case of - if your not in the markets investing - then your square - a market that consistently moves - creates excitement - eliminates the stagnation - and investors would invest all the more... Its about markets that move... keep them moving.... Apply a system that is fair - and that moves stocks on real factors that influnce such sectors and stocks .... If a system is moving all stocks - there would be interest in all stocks - and that means a far more successful exchange or market....
Investors would be lined up hand over fist - wanting to invest - knowing that such a system would move the stocks - and it would solve the long waits - all the stagnant down time for investors who are invested in companies that press lil or next to no news....
It would offer a goverence that is fair unbiased - with the added assurance to investors - knowing at any given time - stocks would move - such a system would never be stagnant -
Think about it -
If a market is not moving - it becomes flat - and sooner or later - it will drop - the issue is to resolve the stagnantion - and what better than to keep a market constantly moving.... but with real factors that correlate to each sector and stock - outside influences that are stock associated - world news - regional news - market sector news associated ot the stock - even currency influxes...
Changing and improving - all businesses do it .... sometimes its a good thing to come up with answers - and the way i see it - i see a stagnant market - that only needs a few tweeks to get it reved and rolling agian....
Think of how many investors have parked monies in the bank - and given there's so much fear coming in from so many commentators or analysts - wheter to invest - its no wonder why so many investors - have parked their monies outside the markets .....
Since 2007 -08 - how many years has it been ? And still lots of fearful commentators - spewing out all sorts of stuff -
NOW - If i were apart of the market - as an analyst - i'd be focusing my attention on all the parked monies - and on the invesotrs- and how to meld the two - how to get investors back into the markets.
And what better way to help the ecoonomy and helpt the listed companies - job markets - than tweeking a few areas of the market -
I personally find.... its quite hard to keep track of a few stocks... most fo - they just dont have the time.... but on the flip - there are some that can look after 20 -30 stocks or even more.... but on the whole ???? Most investors don't have their nose in the markets eacxh day.... its not their statutory job.... they dont have the time to search out companies to invest in - and how many companies are there - ?
Which is another problem - the expose of the companies- a better system needs to be blue printed - so it makes it easier for investors ot find the companies to invest....
So - what if there was a better way - a way to get more investors to invest - and that way would be a simple computer program that moves all the stocks - based on outside factors otherthan material news..
I THINK IT WOULD SOLVE ONE OF THE GREATEST TURN OFFS - a stock not moving - too long of a wait for company news- and like ive seen before - some stocks dont even have bullboards - which could suggest no interest- and with no interest - that means no investors investing like they could be invesdting in the markets -
Such a new stock moving system would appease traders - they'd want ot invest- knowing the markets are always moving.... and at any given time a stock could move up or down.... an unbiased program that governs all stocks - and moves all stocks - and thus - investors would get back in the market - knowing the stocks would move on an honest basis via - outside factors - a program that moves the stocks - even if there's no material news....
Loook at our stock - the company earns in usd- but yet where was the increase in stock price each time the usd currenct rose ? NOW IMAGINE A STOCK RISING - EACH TIME A CURRENCY RISES OR ON THE FLIP -LOWERS....
Such a system would bolster companies - and improve their SP - and it would inspire invesotrs to invest all the more - and the echanges -well.... my oh my... the exchanges would be extremely busy - knowing that every sector and every stock would be moving all the more.. creating excitement and that means - all the more investors trading.... The amrkets would rise sky high - and it would provide fertile grounds attracting all the more investors...
A computer program - unbiased - no human element other than the initial design -a program that's fair - intelligently designed - a system that moves stocks when they're suppose to move - now imagine all that down time when theres no news - and a stocks doesnt move - like everyone experiences now ? That would be a thing of the past - and i'd say - it would make it all the more fair - certain traders would think twice before shorting - knowing that at any given time the stock could move either way - up or down ....
One only needs to surf the many boards - to figure out where the issues are - and if investors are are unhappy - hardly any news resulting in stocks not moving - or worse yet - slidning - its no wonder then - the markets have become stagnant - SOOOOOO - why not fix such issues ?
And what better way than to implement a system that moves stocks - commodity factors - currency factors - all outside factors - like if the Native casino industry was growing - then pyd is attached to that sector - hence the price should reflect such a valid growth - and of course apply this method to all sotcks - in all sectors with such outside influences - a guaranteed system that moves stocks.... it would regenerate - reinvigorate - the entire markets - for the better - for all parites - exchanges and traders - it would bolster the markets like they've never seen....
Appeasing all patires connected to the markets - companies would certainly be happy - exchanges would be happy - stocks moving more = traders investing more - and investors happy markets move - without news - and voila - you'd have the strongest markets ever !
Sorry to be so repeative - Hard to type in this little editor box... lol But i like to make things better - i like fixing things - improving thnigs - nothing more or less... Again - Just ideas !
Trying to understand - how it all works - and offer ideas in what i think would make it better ... nothing more or less - just trying to see where the issues are and perhaps offer a suggestion or two - and the way i see it or understand it - and i could be wrong - or i could be right - and then again - the markets could be amazingly better - so why not focus on improving the markets ? And the outcome - till appeases all who make up the markets - and with such a system the markets would move all the faster - and a moving market excites investors - it would spark more investors to get back into the markets - and invest all the more- helping companies advance - helping the economy- helping to create more jobs- and the exchanges would be al lthe more businer....
A WIN FOR ALL !
Cheers !