Here to stay schreef op 12 april 2021 23:09:
Dit is een interessante uiteenzetting aangaande abbotts als koper van novacyt ;twitter.com/SteveBennett17/status/138...
En deze is ook heel typerend en zou me zeker niet verbazen.
1. Management stops defending the stock price.
CEOs usually have a large stake in the company. Sometimes massively large. Whatever skin you’ve got in the game, they’ve got more.
If their stock drops inexplicably from $60 to $40, the CEO is taking a massive hit to their net worth.
If the company isn’t coming out with positive PR, or trying to reassure investors, it's possible they've already signed a deal to sell for $90. After all, what difference does it make if it the stock treads water between $40 and $60? In the CEO's mind, the deal is done.
Companies don’t like to see their stock prices plummet because it makes it harder for them to borrow money, or issue shares to raise capital. It’s also a matter of prestige. Being the CEO of a billion-dollar company is a bigger deal than being the CEO of a company worth 875 million.
Sometimes before a merger, Wall Street will crush a stock to shake out the ordinary investors. Their goal is to own as many shares as possible. If you own this stock, Wall Street can’t own it.
So, what is the company’s management saying? Are they being silent while the stock price plummets, or are going on a expletive-ridden tirade like Clover Health CEO, Vivek Garipalli?
A quiet CEO is hiding something. Especially if a merger is already agreed upon. They don’t care about the stock price anymore, because in their heads it’s not $40 or $30, or -22%, or whatever. The stock price in the CEO’s head is $90, so what’s there to panic about?
Voor meerdere punten zie de link hieronder;www.griproom.com/fun/10-signs-your-co...
Graag feedback !