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it takes time for information to be priced in That's basically why I called it "scary". It's amazing that there was 28 dollars/share worth of missing informati
by mynameishere 19y ago
it takes time for information to be priced in
That's basically why I called it "scary". It's amazing that there was 28 dollars/share worth of missing information in this situation. If that sort of oversight lapse is at all common, we're screwed worse than we can possibly imagine.
- tom_rath 19y agoI wouldn't call it common, but huge companies make huge mistakes from time to time (recall Enron, Nortel, etc. just a few years ago) and the investors in those companies are the ones who pay the price. In this particular case the "missing information" is worse than you think: BSC shares were at ~$160 less than a year ago with much the same assets now being priced at only $2 per share. Remember though, the assets haven't disappeared: They still exist and are producing wealth in the economy. None of the included properties are going to evaporate. As with Enron's meltdown, business continues as usual under new ownership, with the old owners now holding significantly lighter wallets.
- jdavid 19y agoMy family had stock in Montana Power before the decided to become a Fiber company in 2001. the stock price was 70+ and 2 months later it was trading for cents.