2
votes
1answer
77 views

Why do many British companies offer a scrip dividend option in lieu of cash?

Some stocks like GlaxoSmithKline, HSBC, Tesco, Unilever all offer dividends every quarterly/yearly, with the option of scrip dividend (opting to use the dividend to purchase shares). Why would ...
11
votes
7answers
2k views

Why does the share price tend to fall if a company's profits decrease, yet remain positive?

I often see news reports along the lines of "Company X has posted a profit of $100 million, 20% lower than the previous year." This kind of news frequently causes the company's share price to fall. ...
4
votes
2answers
115 views

What to consider before buying (exercising) a family member's private company employee stock options, about to expire?

My brother-in-law is leaving a private tech company. He has $100,000 in stock options (fully vested) which he must either purchase, or abandon completely upon his exit. This is not a startup — ...
1
vote
1answer
158 views

Why is Dell currently trading above the buyout price?

Dell is going private at $13.65 per share, so why is it trading at $13.95 per share right now? Does anybody know when the buyout will actually go through? I can't seem to find that information ...
13
votes
4answers
2k views

How does one value Facebook stock as a potential investment?

What techniques would you use to valuate Facebook to determine whether its current stock price is inflated, or whether it represents a good investment?
3
votes
1answer
237 views

How do NOLs (Net Operating Losses) affect an investment decision?

[A company trading on the NYSE for $1.85/share] just had a conference call... They have... cash equivalents of $2.27/share. They have more than $1/share in NOLs. NOL, I guess, is Net ...
3
votes
1answer
65 views

Do any sites offer historical valuation statistics?

I am new to investing and just learning the basics such as fundamental analysis. One thing I am interested in is retrieving historical figures such as P/E, PEG, EPS, etc. Does anyone know where this ...
0
votes
1answer
95 views

How are investment funding valued when invested in a company before it goes public?

Is there are particular method for banks or individuals when their capital is invested in the company before going public? To make it more clear, how was the Facebook Inc. and Goldman Sachs deal ...
0
votes
3answers
170 views

Can a wealthy investor invest in or make a deal with a company before it goes public / IPO?

Can a wealthy investor invest his money in any company before it goes public / IPO? I am referring to a recent Goldman Sachs and Facebook deal worth $450 Million at a valuation of $50 Billion dollars. ...
3
votes
2answers
132 views

How exactly could we rank or value how “rich” a company brand is?

I've just read http://www.bloomberg.com/news/2011-05-09/apple-brand-value-at-153-billion-overtakes-google-for-top-spot.html and it says Apple's brand value is $153.3 billion and Google's is $111.5 ...
67
votes
11answers
8k views

Why would a company care about the price of its own shares in the stock market?

After a company has issues shares, why should it care if the value of the shares go up and down? Since the shares are now being traded among the public, if the value goes up or down, that is strictly ...
0
votes
1answer
172 views

Var, Free Cash Flow, Moving Average of Closing price

Instead of P/BV only and P/E and Debt/Own capital, and other ratios like that could someone use instead: VAR/IVAR/TVAR ? Free Cash Flow Trend of Moving Average of Closing prices in his arsenal? ...
13
votes
5answers
955 views

How to evaluate stocks? e.g. Whether some stock is cheap or expensive?

What kind of information do you obtain before buying (or selling) a stock? I know the PE ratio is very important, but not the only thing. Are there any rules of thumb to determine whether some stock ...
7
votes
3answers
168 views

Why would selling off some stores improve a company's value?

I was watching Mad Money last night and he was discussing Sunoco how they were planning to liquidate some of their retail locations, thereby improving their value. Why is it that removing locations ...