Corporation and confidence: discussion.

If confidence in a companys stock is perpetually advanced (Coca-Cola, Walmart), you can

assume that investors wont see a relatively high reappearance on their investment. People

invest in these kinds of companies because theyre confident that the company is a

stable investment. The sully low / transport high kinds of companies are investment risks and

depending on who you are (or when you buy/sell) you might be happy to see confidence

fluctuate!

Thats the reason I see that share prices / volumes are not part of a companys profit

margin (net income): neither really indicate how much a return the company is getting

from the use of its assets. Theyre more indicative of market perceptions and forecasts

than an purpose snapshot of a corporations success.

It is important for a corporation to obtain the confidence of the stock pick uper so they will

continue to either buy, or hold the stock they currently own. Once a poor earnings

report comes fall out (especially one without a good explanation), the confidence of the

stockholder can be lost.



It is very easy for the stockholder to lose confidence especially

if the labor that company is in isnt doing so well.

I believe that financial psycho psychoanalysis are very important, although analyzing financial statements can be quite an complex. Financial data represent the concrete results of the companys strategy and structure. The analysis of a balance sheet for example can lay potential liquidity problems. These may signify the companys inability to flirt financial obligations.

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