Company Share Prices

[Thomas-the-Terrano2]

if a firm's share price isnt doing well at what point is it game over?

when share price reaches zero, thinking someone who wants to
take over could make a killing buying really cheap? like a competitor
and gain an infrastructure far quicker than starting a fresh.

how would this work if on face of company is making a profit still
seems bit rough a company's future hangs on if outsiders want
shares in it still.

thoughts welcome purely hypothetical of course.

 

[(RIP) PLANK]

i have absolutely no idea - i hope that helped :thumbs

did you get a parcel today?

 

[Thomas-the-Terrano2]

i have absolutely no idea - i hope that helped :thumbs

did you get a parcel today?

no, think it came friday or saturday tbh, sorry forgot to let you, know, though
daved got parcel 1 friday.

this is all very cryptic AND off thread.

 

[(RIP) PLANK]

no, think it came friday or saturday tbh, sorry forgot to let you, know, though
daved got parcel 1 friday.

this is all very cryptic AND off thread.

ok then i'll skip the complex hand shake :augie

 

[Deleted account DD]

all very secret squirrel :augie

 

[makeitfit]

Damn squirrel's been at me nuts again

 

[(RIP) PLANK]

This thread was in trouble from the off, if we had any financial nous we wouldn't be driving fuel guzzling 4x4's :doh

 

[makeitfit]

I take umbridge at that remark I'm on bio :lol and have about £3.78 in my Top Gear "Stig" money box :stupid

 

[Thomas-the-Terrano2]

if a firm's share price isnt doing well at what point is it game over?

when share price reaches zero, thinking someone who wants to
take over could make a killing buying really cheap? like a competitor
and gain an infrastructure far quicker than starting a fresh.

how would this work if on face of company is making a profit still
seems bit rough a company's future hangs on if outsiders want
shares in it still.

thoughts welcome purely hypothetical of course.

genuine query, place where a mate works isnt doing well
atleast from share price, but does the whim of the market
really define if a firms stays or goes?

 

[makeitfit]

Depends how much the co. owes I guess. It can be making a profit but only on existing terms from the bank. Maybe the bank want the overdraft paid off or they've been earning well on an existing contract that's about to finish.
Get the company's accounts from companies house if you want to check it out:thumbs (assuming it's LTD)

 

[Thomas-the-Terrano2]

PLC

 

[makeitfit]

PLC

There you go look em up :thumbs

 

[(RIP) PLANK]

I wasn't doubting the genuineness (is that even a word?) of the enquiry, but our ability to answer. I believe that many company's trade and survive with very poor share values it just makes them more prone to take overs and asset stripping etc.

 

[lacroupade]

genuine query, place where a mate works isnt doing well
atleast from share price, but does the whim of the market
really define if a firms stays or goes?

Its very complex as there are a whole barrel of things that give a company value, anything from net and gross profit to goodwill.

For example, a company could be making good gross profit but a net loss....but a potential buyer could easily take the view that their overheads are too high and could easily be trimmed to result in a net profit instead.

If they ARE making a net profit already then that can help determine the company's value (X times the profit depending on industry sector).

Branding can have a huge value. Virgin for example could go broke tomorrow but still be worth a fortune for obvious reasons.

At the end of the day shares are worth what someone is prepared to pay for them but ultimately no, it isn't the market that determines the fate of a company other than an unreasonably low share price (versus the asset value of the company) may allow an unwanted bid for the company.....but that low share price will have resulted from poor performance by the company normally.

 

[Thomas-the-Terrano2]

oh ok,

wondering as they are lower (12p)than we he joined share save scheme(20p)
and there had previously been a rumour that if got down to a certain
price the doors would be closed(9p).

also thinking if prices get low enough as said could have a take over bid but
equally savvy staff might buy up shares?

 

[lacroupade]

oh ok,

wondering as they are lower (12p)than we he joined share save scheme(20p)
and there had previously been a rumour that if got down to a certain
price the doors would be closed(9p).

also thinking if prices get low enough as said could have a take over bid but
equally savvy staff might buy up shares?

Sh1t does indeed happen.

I can remember being given $100,000 worth of share options when I joined Dell some years ago. Within six months I'd made $55,000 without lifting a finger.

But within seven months the technology bubble burst and the shares hit the floor and weren't worth lighting the fire with. Such is life

The share price is never a signal for someone to 'shut the doors', because it effectively (but not always accurately) reflects the value of the company, so its the other way round.....company doing badly, bank calls loans in or company can't meet commitments like wages etc.. so they close the doors, at which point shares (which will have already hit the floor) are usually suspended.

But you're right; if you have faith in, or knowledge of, the companies future prospects, a bit of a punt is sometimes in order. Lots of people actually make a living trading in what they call penny shares, i.e. share price is in two figures or even one (i.e. sub-10p), because it doesn't take a lot for relatively quite a bit of movement and therefore profit. But unless you are very well informed it can be a mugs game, even the so-called experts don't always get it right.