GREY:RNKLF - Post by User
Post by
pierregon Apr 11, 2019 7:09pm
160 Views
Post# 29615942
$RNX: Shareholder value should be the #1 priority
$RNX: Shareholder value should be the #1 priorityShareholder value should be the #1 priority, an insightful post by @Lexcon on CEO.ca March 29th 2019:
«"shareholder value should be the #1 priority"
there is a difference between shareholder value, and the markets share price.
doing some short sighted move that doesn't add long term value, but bumps the price up 10 cents, is somehow considered to be adding shareholder value by some here because they are then able to flip their shares for a small 10 cent gain in share price appreciation,....to them the dime the share price increased was great shareholder value increase.
but, management taking the time to look at the longer term impact of what the action taken adds to the value of the enterprise owned by the shareholders, and by extension increasing enterprise value does increase shareholder value (even if the current market share price doesn't move a penny) because in time the market will reflect the underlying value of the assets.
a short term increase in share price (that is being cried for by the naysayers and management haters) does not add as much shareholder value as building up the enterprise value for the shareholders that will stay around for the time it takes to make multiples of the current share price rather than a quick dime.»