I am surprised to see the very sharp decrease in A
Post# of 30067
Posted On: 01/06/2016 11:52:41 AM
I am surprised to see the very sharp decrease in AMBS price. But not surprised in the light of the nature of business in general.
Business always carries real risks that sometimes are unexpected or not within one's control. While the science is important, the business aspect is always the most critical part. If not, MacDonald will not be the most successful hamburger seller or Ikea will not be such a well known furniture vendor. There are many other companies with better 'science'. Ultimately, the investors too measure their investment success by the company stock price, a business component.
In addition, value is a matter of perception. Some perceive AMBS value based on its science, some perceive based on its business strategies, some perceive based on market conditions and some perceive based on its management. Because of these differences in perception, there is a market.
Understanding these two points is important to understand that eventually it is our own value perception that we make our own investment decisions. Each perception may or may not have consideration of the business aspect. In addition, we are handicapped by not knowing exactly what happened behind the scenes and like many businesses, AMBS management will not have 100% grasp of all the business intelligence in the landscape for their analysis and execution of their business strategies. While we can direct our anger on Gerald or AMBS management for the poor performance of the stock price, the jury is still out on the truth.
Whether AMBS can make it eventually is very largely dependent on its business strategies and execution. If it is also complemented by its good science (which is a given and mostly agreed by the investors) and other favorable conditions in the landscape around AMBS, then AMBS will rise from the ashes again and be counted.
Business always carries real risks that sometimes are unexpected or not within one's control. While the science is important, the business aspect is always the most critical part. If not, MacDonald will not be the most successful hamburger seller or Ikea will not be such a well known furniture vendor. There are many other companies with better 'science'. Ultimately, the investors too measure their investment success by the company stock price, a business component.
In addition, value is a matter of perception. Some perceive AMBS value based on its science, some perceive based on its business strategies, some perceive based on market conditions and some perceive based on its management. Because of these differences in perception, there is a market.
Understanding these two points is important to understand that eventually it is our own value perception that we make our own investment decisions. Each perception may or may not have consideration of the business aspect. In addition, we are handicapped by not knowing exactly what happened behind the scenes and like many businesses, AMBS management will not have 100% grasp of all the business intelligence in the landscape for their analysis and execution of their business strategies. While we can direct our anger on Gerald or AMBS management for the poor performance of the stock price, the jury is still out on the truth.
Whether AMBS can make it eventually is very largely dependent on its business strategies and execution. If it is also complemented by its good science (which is a given and mostly agreed by the investors) and other favorable conditions in the landscape around AMBS, then AMBS will rise from the ashes again and be counted.
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