General Discussion

CincyDem

(7,408 posts)

19. Sure - ok.

Tue Apr 11, 2017, 06:53 PM

Apr 2017

Sounds lie a great economic argument. From a financial perspective, I think we would agree that that only real value of a corporation is book - usually far far far less than market value. Anything above book is trading value and you're right, when 10% of owners decide there's enough wrong with this stock to want out (at any price), that leads to herd mentality.

That said - suggesting that market cap is a bogus concept misses the point. Try using stock as loan collateral and convincing the bank that the real value of the stock is different from the market value. For the bulk of the population, market value is real value. You can ride out the swings and not realize the gain/loss but that doesn't mean that the value isn't changing with the market.

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Uniteds stock is set to fall 2% and wipe $500 million off the airlines market cap [View all] BigBearJohn Apr 2017 OP

Should have offered more cash to empty those 4 seats, eh ? CincyDem Apr 2017 #1

+1000 Pachamama Apr 2017 #3

Or "Pyrrhic Victory" - nt KingCharlemagne Apr 2017 #9

They should do something about all four officials who caroldansen Apr 2017 #2

Were they United employees? Baconator Apr 2017 #5

Their fate will be determined by their ticket pricing ecstatic Apr 2017 #4

They'll wait it out... Baconator Apr 2017 #6

Yup absolutely nycbos Apr 2017 #13

Hit 'em in the wallet HAB911 Apr 2017 #7

Sadly, a well-deserved stock price dive is about the only thing that will prod action from United. LonePirate Apr 2017 #8

-or- How a CEO loses his job in one day BigBearJohn Apr 2017 #10

Six percent. Ouch. eom littlemissmartypants Apr 2017 #11

Could have purchased a plane to fly those employees - or 4 planes, one for each Justice Apr 2017 #12

market cap is a bogus concept eniwetok Apr 2017 #14

yes - that's exactly what would happen. CincyDem Apr 2017 #15

portfolio value is not real value eniwetok Apr 2017 #16

Sure - ok. CincyDem Apr 2017 #19

sure market cap is misused... eniwetok Apr 2017 #21

You could expand that same argument to pretty much anything of value Major Nikon Apr 2017 #22

The CEO needs to go. sarcasmo Apr 2017 #17

That was one expensive blunder. lpbk2713 Apr 2017 #18

Couldn't happen to a nicer bunch of guys! LongTomH Apr 2017 #20