5 ms·
I'm always confused when I hear of any strategy that involves doing x when share price is low and y when share price is high. If you can know when shares are l
by netcan 17y ago
I'm always confused when I hear of any strategy that involves doing x when share price is low and y when share price is high.
If you can know when shares are low or high, there are lots of ways of using that information. The problem is knowing.
- jakarta 17y agoIf you are running a company, you should know when the price of your stock disconnects from the actual fundamentals of your business.
- sokoloff 17y agoAgreed, and I think it happens much more often than most people realize... It's the disagreement on what something's worth that makes the market.
- kelnos 17y agoIt's not really about high and low, it's more about valuation. If you can peg your valuation at $20 per share based on a variety of factors related to your revenue, free cash flow, discounted growth, etc., but your stock is trading at $12/share, your company is undervalued and a share repurchase may be a good idea. But if your stock is trading at or above $20/share, yet you can't make the case that your company is actually worth more than $20/share, it's foolish.