Now that 'blue chip' stocks...
HK wrote:
D.Duck wrote:
"HK" wrote in message
m...
D.Duck wrote:
"HK" wrote in message
m...
D.Duck wrote:
"HK" wrote in message
m...
...are selling for the same amounts as "penny stocks" used to
sell for...
...what are penny stocks selling for?
My take on stock prices:
Stocks are now selling are prices that more closely reflect the
actual value of the companies that issued them, and the prices
they should have been selling for for the past two decades.
And who/what determines the actual value of stocks, your real
estate, your boat, your car, etc.?
The price of one's house (at least when you buy it new), car, boat,
commercial real estate, has little to do with the sort of
speculation and book-cooking done in connection with the sale of
corporate stocks, et cetera. Now, because of greed and outright
fraud in the lending, stock, insurance businesses, the value of
just about everything has gone down because far fewer people have
the wherewithal to buy.
I saw earlier today that Citibank shares were selling for less than
the ATM charges some banks charge.
Does anyone really think the value of shares will rise to where
they were a couple of years ago? Or that they should?
If stocks don't go up, look at all the retirees that will be working
at Wal-Mart till they just can't do it any longer. Many millions of
people have seen their 401Ks take a tremendous hit, money they were
counting on for retirement.
Oh, I understand the ramifications of the crash. I just believe the
share values of the past were grossly overinflated due to
speculators, those who feed and feed upon speculators, dishonest
accounting firms and dishonest corporate officials, banking,
brokerage and insurance industries, and the mal-, mis-, and
nonfeasance of the regulatory agencies under Bush.
Any small investors who in the future decide to participate again in
the corporate stock ponzi schemes should be very, very sceptical of
stock prices and what supposedly underpins P/E ratios.
Oh, and the Teamster's pension fund problems come to mind.
Once again, I will remind you and others that if you are a trustee on a
union pension fund and "mess around" with the funds, you are prosecuted,
and the financial losses are made good by the mandatory bond. The
bonding company typically works closely with prosecutors to try to
ensure time in the slammer for the perps.
Yeah, right.
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