Stock price

IamagolgbugIamagolgbug Posts: 22 Tin ✭
How does a company grow and grow yet the stock price remains lethargic ?

Comments

  • ike11ikeike11ike Posts: 138 Bronze ✭✭✭
    The market is not efficient. Stock prices rarely reflect true value. Investor behavior, emotion, and sentiment determine the price in the short term. Long term value is almost always truly recognized.
  • GoldMattersGoldMatters Posts: 3,402 Gold ✭✭✭✭✭
  • mr1mr1 Posts: 143 Bronze ✭✭✭
    edited May 10
    The Market Capitalization (# of shares * price per share) is basically the market's representation of the value of that company. And a company's value is more or less the Assets-Liabilities+expected Net Present Value of all future cashflows. Company "growth" (i.e. more users) may not necessarily correspond to an increase in company value. The price of a stock like Goldmoney is highly dependent on expectations of user growth and how profitable those users are. Different projections of user growth rates could give vastly different valuations for the company. So just because the company is growing doesn't mean the stock price should go up. Growth expectations have always been baked into the stock price and so if actual growth rates aren't meeting up to previous high expectations (or if new users are not as profitable as expected), then the stock price can go down even though the company may have had some "growth".

    Also, as @ike11ike says, markets are not completely efficient, and maybe some investors are just to biased against gold or skeptical of the Goldmoney's potential, despite its "growth". It could be that Goldmoney is just undervalued right now, and it is a good time to buy.
  • GoldMattersGoldMatters Posts: 3,402 Gold ✭✭✭✭✭
    @mr1 good anaylsis. Agreed!
  • GoldIsCurrencyGoldIsCurrency Posts: 1,628 Gold ✭✭✭✭✭
    Good analysis @mr1

    Nice to see some upwards momentum today. Thanks to whomever that was on the buying spree.
  • GMONEY1GMONEY1 Posts: 245 Bronze ✭✭✭
    just a quick EMA update here:

    XAU currently trading around 3.16. EMA500 is 4.14 ... so if you have a longer term scope, technically, there is about a dollar discount in the stock right now... just based on EMAs. That said, EMA50 is still less than EMA90, and EMA90 is still less than EMA200 (daily). So if front-weighted price action is important to you to make short term decisions... there you go. EMAs converging ever so slowly (i.e. in a deliberate manner...still).
  • ike11ikeike11ike Posts: 138 Bronze ✭✭✭
    @GMONEY1 Still haven't bought any shares. Been burned on very long term bets in the past.
  • BigMouseBigMouse Posts: 44 Tin ✭
    edited May 26
    @GMONEY1 thanks for the EMA analysis. Just bought shares this morning at $3.15. Prepared to buy more if it goes below $3.00.
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