341–350 of 491 posts
This seems like bad news for regular investors, and good news for insiders. Reporting is burdensome, sure, but being listed on public exchanges is not a requirement.
Makes companies short-sighted though. I wouldn't say that's necessarily good for regular investors.
Share buyers are clearly rewarding investing for the long term, even with quarterly reporting.
This seems like bad news for regular investors, and good news for insiders. Reporting is burdensome, sure, but being listed on public exchanges is not a requirement.
Aren’t there some factors that require a company to go public? For example, I think there’s a limit on the number of investors (1000?).
Earlier quoted context omitted.
I'm fairly certain you're describing fraud.
I'm fairly certain he's describing the economy. There are so many companies like this which are just moving money around rapidly in and out with little to no actual profit. Finance sector is easily gamed. For example, anyone can become a billionaire; just start a company, issue 1 billion shares at slightly above $1 each, keep most of them for yourself; release just 10K shares to the market and then let traders trade…
One of my favorite stories about logistics and quarterly earnings deadlines (from when I worked at a pharmaceutical company: "In our business, a truckload of various drugs can easily reach $10-$15 million. Now, if that truck arrives at the depot at 11:59pm March 31st then it's first quarter earnings. If it arrives at 12:01am April 1st then it's second quarter earnings. $15 million is a BIG shortfall, even for us, so…
"We risk everyones lives in order to have a barely just-in-time warehouse on shipments in the low 8 figures." Cool. What company is this?
If you want to discourage short-term thinking, make the vesting period longer on executive stock grants. Making companies' performance less transparent just opens up more opportunities for insider trading.
Give them no stock, pay them 100k a year and if they fuck up fire them rather than saying they left to "spend more time with their family" - kinda like the rest of the working joes out there.
Pay me 100mil this year and I might as well spend the rest of my time on the job gambling with shareholders money or trying to shag everyone in HR, there are no longer any consequences to my actions.
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That doesn't make any sense because the revenue is already booked for the sale which has nothing to do with when the delivery truck actually arrives.
If it is cash based accounting, revenue and expenses are booked when the money changes hands. If it is accrual-based acocunting, it takes place when the event legal triggering the change of ownership of goods in the transaction takes place, which depends on the shipping terms, which could be anywhere from when it is available for the buyer’s transport agent to pick up at the seller’s facility (EXW) to when it is deli…
- incoterms (https://www.dhl.com/content/dam/dhl/global/dhl-global-forwar...)
- cash flow statement v. income statement (accurals)
ultimately supply and demand should result in less demand for the stock of companies that do not provide adequate transparency about results. Supporters of the idea would likely say: "But considering that stock price crashes result in government bailouts, why bother reporting bad news since it just panics everyone and necessitates a bailout that shouldn't have been necessary."
One of my favorite stories about logistics and quarterly earnings deadlines (from when I worked at a pharmaceutical company: "In our business, a truckload of various drugs can easily reach $10-$15 million. Now, if that truck arrives at the depot at 11:59pm March 31st then it's first quarter earnings. If it arrives at 12:01am April 1st then it's second quarter earnings. $15 million is a BIG shortfall, even for us, so…
I don’t get it, why not just say “oh we were 15 million short that quarter and 15 million ahead this one so it’s all good” Like why get hung up on these arbitrary cutoffs
Earlier quoted context omitted.
I don’t get it, why not just say “oh we were 15 million short that quarter and 15 million ahead this one so it’s all good” Like why get hung up on these arbitrary cutoffs
This is what confuses me about tech sales too. Why do I always get a discount for buying right at the end of the quarter? Seems like you could just get ahead on the next one.
Earlier quoted context omitted.
> Part of the creative destruction of the dot com bust was the legion of badly performing companies that went public and were thoroughly rejected by public investors, offering an exit to later investors and employees. That's not how I remember it. I remember lots of publicly traded company shares being gobbled even though their business plans[1] were essentially: 1. Collect underpants 2. ? 3. Profit "Going for market…
I'm having a hard time responding to someone who's using a South Park episode as a discussion point. Like how can I debate a point made by a show that makes content reacting to the popular perception of certain ideas? That's like 2 levels removed from the actual true details. Anyway the difference now is that those companies still exist they just take round after round of private investor capital and the employees ar…
The South Park episode came out in 1998, when the profitability of tech companies was… questionable, but their popularity was very high. It was social commentary on the zeitgeist and group think of the time. And it turned out the irrational exuberance was not justified for the valuations, as everyone learned post-2000.
And have we learned anything since then? What are valuations and P/E multiples now? And it goes back centuries in the past as well, so 'modern tech' is hardly the driving force:
* https://en.wikipedia.org/wiki/Technological_Revolutions_and_...
Your original post stated "the legion of badly performing companies that went public and were thoroughly rejected by public investors". The historical record shows that these companies going public were not "thoroughly rejected".