[at-l] Ford

[Jim Bullard]

No, but when people see stock starting up they rush to buy shares. That
pushes the price of shares up further (supply & demand). When it has gone up
the amount you want to make (as a percentage of your investment), you sell.
When everybody starts selling the price of shares drop, however those who
sold first made $$$$. Nothing was produced and no products were sold nor is
the real value of the company any different (total assets) but companies
have been ruined by the perceptions of investors. Remember Montgomery Ward?
They were making a profit when they went broke but it was single digit
profit in a period when investors were demanding double digit profit.
Investors pulled their money out, MW had no cash to operate with and folded.
It's all about perceptions of value and quick profits for investors, not
real value and profit for the company. It's a form of gambling in which the
chips are other people's livelihood.

Jim Bullard
http://jims-ramblings.blogspot.com/
http://members.photoportfolios.net/Jim_Bullard


On Thu, Mar 19, 2009 at 3:00 PM, Felix J <AThiker at smithville.net> wrote:

>  Gary Ticknor wrote:
>
> Besides, if the *profit *falls by 75% per quarter, it is still profitable.
> - no *loss *ever.  Wall Street loves profit.
>
>
> All of your explanations are making just about as much sense as Wall Street
> in general  :-)
>
> (generally when a company's profit 'tumbles 75 percent', shares don't jump
> $2+. At least that's my guess.)
>
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