Are stocks overvalued?

Discussion in 'Valeant Pharmaceuticals' started by Anonymous, Aug 20, 2014 at 7:26 AM.

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  1. Anonymous

    Anonymous Guest

    . Who is out there banging the table and saying 'you've got to own stocks. They're fantastic. Buy them here.'... Until we get to a place where everyone says you can't lose in the stock market, then call me and talk about irrational exuberance.
     

  2. Anonymous

    Anonymous Guest

    I'll get back to you on this.
     
  3. Anonymous

    Anonymous Guest

    Who knows . Every day a different opinion. Diversify
     
  4. Anonymous

    Anonymous Guest

    I can't understand why companies go public. Here's how I see it: if I'm a shareholder and I buy shares, I'm essentially telling a company "I'm giving you money now, but I'm doing so because I expect you to return more money to me than what I put in. If I get the impression you're not pulling your weight and profiting (or, if you're not profiting as much as I'd like you to), I'm going to vote to make leadership changes until I get what I want." And then there's the loan shark, who says: "I give you money, you give me the money back with interest. If I don't get what I want, I hurt you." See the difference? Yeah, me too...barely.

    I understand that not all companies are lucky enough to grow on their own, and sometimes going public is a necessity, but if I were them, I'd buy back those shares the moment I was in a good financial spot. Why on earth would companies want to be at the mercy of their shareholders? They already produce a product/service that we consume, isn't that enough? I'd rather take input from my customers anyway (i.e. the people who actually buy my stuff).

    Look what happens when shareholders unite like they're doing with the VRX/AGN battle? Five years ago, AGN was trading for less than half what it was when VRX/Pershing announced their intentions to pursue them. You'd think a 100% rise in stock would be impressive to most people, but apparently 31% of the shareholders felt strongly enough about the acquisition that they agreed to a shareholder meeting.....this, despite the fact VRX has repeatedly refused to use GAAP metrics when presenting to their shareholders, and has yet to prove beyond a reasonable doubt that they're even profitable.