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It's temporary because these companies create shares every month to give out as incentives to their corporate suite.
by gscott 7y ago
It's temporary because these companies create shares every month to give out as incentives to their corporate suite.
- nostrademons 7y ago...which are both predictable and included in the company's income statement ("stock-based compensation" is a line item). Stock prices move based on unexpected information. If you've done your homework on the company's fundamentals, dilution from stock-based compensation has already been factored into earnings per share. (Bad acquisitions are another matter - a much more common failure mode for dumb companies is to blow a lot of money on acquisitions and then fail to integrate the acquisition in a way that increases the bottom line.)