This paper documents substantial variation in the prices of common stocks in U.S. markets due to firms selecting particular price ranges for their shares. Cross-sectional evidence indicates that variables consistent with Merton's (1987) model of capital market equilibrium explain roughly two thirds of this variation in share prices. In addition,...
With the WWDC set for June 9-13 and the current AAPL share price of $186.10 - we are being asked about whether we see a $200 share price for AAPL in the near term. Now the AAPL share price may reach $200 in the near future – there are a...
When companies buy back their own stock, they can usually expect the capital markets to reward them with an increase in their share price. But buybacks don't increase a company's intrinsic value. Any mechanical increase in earnings per share will likely be offset by a reduction in the company's price-to-earnings...
The value of mandatory securities disclosure is intensely debated. Two big questions occupy much of the attention: Do more accurate share prices contribute to the efficient provision of goods and services in the economy? Even if they do, will mandatory disclosure effectively contribute to share price accuracy? To date, the...
Since the stockmarket bubble burst more than three years ago, investors have had ample time to ponder where to put the remains of their money. Economists and analysts too have been revisiting old ideas. None has been dearer to them than the capital asset pricing model CAPM, a formula linking...
This tool calculates the necessary share price to break even when you redeem your mutual fund shares. It also calculates the necessary percentage increase in share price to meet your break-even point.
FRANKFURT (Reuters) - Family-owned Schaeffler has raised its takeover offer for tires-to-brakes maker Continental CONG to 70.12 euros per share from 69.37 euros previously, the ball bearings maker said on Monday. The company had already said it would adjust its offer ...
The purpose of this paper has been to clarify and provide expert advice on how to create a sufficiently transparent business model. Too many companies are assessed solely on the basis of factors that have direct influence on their share price, for example changed depreciation principles and the lack of...
Cindy Reed submits: Since Citadel’s cash infusion in late November 2007, E*Trade’s ETFC share price has been range-bound: dropping as low as $2.08, rising as high as $5.48, and sitting at around $4 for the past two months. Illogically, this current $4 range was the exact low price range in...
With the release of Apple’s AAPL latest quarterly results the share price headed to the $150 a share range in after-hours trading. Valuecruncher did a valuation for Apple in early June that put a base case valuation on AAPL of $146.70 – 21% below the then share price of $186.10....
FP Trading Desk submits: Ember Resources Inc's (EBRRF.PK) upped the ante in the fight for Cordero Resources Inc. (CDEYF.PK) last week and based on Cordero's rising share price Monday morning, it may have gained the upper hand. Last Thursday night, Ember said it would pay C$5.35 per share for...
From the executive summary: ‘Conventional wisdom holds that institutional investors, particularly mutual funds, automatically unload all holdings of stocks trading. As a result, finance executives may worry that wholesale institutional selling could put further pressure on a teetering share price. If a stock lingers too long at that level, sell-side...
Firms that go public in an IPO Initial Public Offerings must choose a number of shares to offer and a price level for those shares. While this division would seem to have little economic significance, firms do not appear to choose their IPO share price level arbitrarily. The authors ask...
The chairman of communications and entertainment conglomerate, Liberty Media, has acquired an extra USD95m worth of company stocks over the past week, reports Colorado's Rocky Mountain News. John Malone reportedly bought a total of USD94.5m Class A shares and USD1.4m Class B at a price of approximately USD14.30 per-share....
Although boardroom bust-ups have been happening since companies were first formed, the stresses and strains caused by a global demand forever improving share price performance today produce more internal disputes among directors than in the past. The time to come out fighting is when the battle is over, and reputations...
From the executive summary: ‘Researches indicate that many CFOs were thinking about the rule change proposed by the Financial Accounting Standards Board FASB. The rule concerns contingent convertible bonds. They work like regular convertible bonds, with a small, but crucial difference. Unlike a standard convertible, which an investor can trade...
This paper examines the impact on share prices of firms who's CEOs and CFOs certify their financial statements under oath, pursuant to the administrative order issued by the SEC on June 27, 2002. This paper hypothesize that the certification provides assurance to investors by making disclosure more credible and by...
Jeremy Richards submits: Given the current share price of around $2.50, and with the current merger prospects, Sirius SIRI is now a must-own simply because it's well below its fair value of $4 a share by the average analyst. Mad Money's Jim Cramer sees SIRI seeing $6 a share...
FP Trading Desk submits: Rogers Communications Inc. RCI and Telus Corp. TU had their price targets cut and received short-term “sell” ratings from UBS analyst Jeffrey Fan due to the negative impact the wireless spectrum auction may have on their share prices. Both have seen sharp share price declines...
A U.S. fund manager Manning & Napier has come out with an amazing call in Barron’s that their current view of the Google GOOG share price equates to $950 - $1,050. Henry Blodget works through some of the assumptions and is not convinced. Well, neither are we. by...
