(Total Views: 1091)
Posted On: 09/22/2017 4:43:04 PM
Post# of 11803
Some on this board would have you think that share price is not important. This is a MYTH. Share price is important; however, it is NOT the ONLY component in valuating and evaluating a company.
The following text is RELEVANT to the current DECN situation, in particular ...
"Also, consider corporate acquisitions: When one company wants to buy another, instead of the transaction being entirely in cash (maybe they don't have that much in the bank!), there's often an equity component, which involves swapping shares of the company being acquired for new shares in the acquiring company or merged company. In that case, the values of the shares in the public marketplace also matter, to provide relative valuations for the companies, etc."
DON'T let anyone tell you share price is not important - BUT, we knew that already!
The following text is RELEVANT to the current DECN situation, in particular ...
"Also, consider corporate acquisitions: When one company wants to buy another, instead of the transaction being entirely in cash (maybe they don't have that much in the bank!), there's often an equity component, which involves swapping shares of the company being acquired for new shares in the acquiring company or merged company. In that case, the values of the shares in the public marketplace also matter, to provide relative valuations for the companies, etc."
DON'T let anyone tell you share price is not important - BUT, we knew that already!
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