Originally posted by: UglyCasanova
Efficient market theory. All information is currently reflected. Any gain to shares of Sun would already be reflected in the price. I'm not saying that it would be a bad move or not. That would depend on whether you believe that the market price accurately reflects the intrinsic value of Sun, or whether it is over or under priced based all things considered, including the news of the buyout. You can do this by discounting all future predicted dividend payments and compare. Or do a P/E ratio analysis. Yada Yada Yada.
That said, it's up to you to decide whether it's a good bet or not. The price may double tomorrow or the company may go bankrupt. You have to decide based upon the fundamentals of Sun, because the gains on the buyout ship should theoretically have already sailed.
I chuckled.Originally posted by: Hacp
An economist and his student are walking to class when they spot a perfectly good 20 dollar bill. The student gets excited and bends down to pick up the money. However, his professor abruptly stops him, "No, no don't waste your time."Originally posted by: UglyCasanova
Efficient market theory. All information is currently reflected. Any gain to shares of Sun would already be reflected in the price. I'm not saying that it would be a bad move or not. That would depend on whether you believe that the market price accurately reflects the intrinsic value of Sun, or whether it is over or under priced based all things considered, including the news of the buyout. You can do this by discounting all future predicted dividend payments and compare. Or do a P/E ratio analysis. Yada Yada Yada.
That said, it's up to you to decide whether it's a good bet or not. The price may double tomorrow or the company may go bankrupt. You have to decide based upon the fundamentals of Sun, because the gains on the buyout ship should theoretically have already sailed.
"Why so?" asks the student? The professor responds,"Well, if the 20 dollar bill were real, someone else would have picked it up by now!"
Originally posted by: Hacp
Originally posted by: UglyCasanova
Efficient market theory. All information is currently reflected. Any gain to shares of Sun would already be reflected in the price. I'm not saying that it would be a bad move or not. That would depend on whether you believe that the market price accurately reflects the intrinsic value of Sun, or whether it is over or under priced based all things considered, including the news of the buyout. You can do this by discounting all future predicted dividend payments and compare. Or do a P/E ratio analysis. Yada Yada Yada.
That said, it's up to you to decide whether it's a good bet or not. The price may double tomorrow or the company may go bankrupt. You have to decide based upon the fundamentals of Sun, because the gains on the buyout ship should theoretically have already sailed.
An economist and his student are walking to class when they spot a perfectly good 20 dollar bill. The student gets excited and bends down to pick up the money. However, his professor abruptly stops him, "No, no don't waste your time."
"Why so?" asks the student? The professor responds,"Well, if the 20 dollar bill were real, someone else would have picked it up by now!"
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