You often hear that as part of a restructuring to improve its financial position, a company plans to sell assets. GE is a focal point of such discussion currently and the company has sold off some divisions. But before you…
The total market value of a company can be divided into two parts: the fraction of due to current and short-run foreseeable operations and everything else. Financial economists have used the term “growth options” to…
On repeated occasions, Eugene Fama has claimed that critics have failed to offer a complete alternative to the efficient market hypothesis (EMH). More specifically, in his Noble speech, Fama said, “Most important, the behavioral literature has not put forth a…
With sky-high valuations in the US stock market, and what we believe is a tech bubble that has dangerous implications for other areas of the market, we suggest four actions investors can take now to avoid the inevitable bursting of…
A company is never so good or a situation so favorable that it cannot be overpriced. In my view, that is our situation today. The pricing of many companies and the market generally suggests a bubble. The questions are why…