> This intrigues me - why does a stock price have to move? A stable > stock price with a reasonable PE ratio may be the sign of a stable > company. Seems to me the idea of share prices having to move is a > recipe for short-term rather than long-term financial management. I > thought that the tech bubble popping had dispelled some of this > growth-over-dividend baloney.
I may be wrong here (and I'm sure I'll be corrected), but I think this may be a difference between the US stock/share business model and the Aus/NZ way of doing things. My understanding is that the dividend doesn't exist in the US. You buy stock at the current price and only make a gain when you sell it at (hopefully) a higher price. In the upside-down half of the planet, a portion of the annual profits are divided up amongst the shareholders and periodically paid as a dividend. So here, a stable company can have a stagnant share price but the shareholder gets sent money every 6 months or year. That would be a reasonable, long term investment. In the US, that would be a poor investment because your $1 share is still worth $1. If you put those differences into the context of Venture Capital, Silicon Valley, dot-coms, etc. it explains a great deal. Steve. ====================================================== Steve Baldwin Electronic Product Design TLA Microsystems Ltd Microcontroller Specialists PO Box 15-680, New Lynn http://www.tla.co.nz Auckland, New Zealand ph +64 9 820-2221 email: [EMAIL PROTECTED] fax +64 9 820-1929 ====================================================== * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * To post a message: mailto:[EMAIL PROTECTED] * * To leave this list visit: * http://www.techservinc.com/protelusers/leave.html * * Contact the list manager: * mailto:[EMAIL PROTECTED] * * Forum Guidelines Rules: * http://www.techservinc.com/protelusers/forumrules.html * * Browse or Search previous postings: * http://www.mail-archive.com/[email protected] * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
