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Re: It was bound to happen sooner or later

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Steve Carroll <fretwizzer@gmail.com> wrote:
> On Saturday, April 11, 2015 at 2:02:47 PM UTC-6, owl wrote:


>> Nobody buys a whole company with
>> the idea of dribbling shares out on the market the next day to make some
>> minute per-share profit.  And if the idea is to flip the whole company
>> in a short timeframe, instead of breaking it up and selling its assets
>> for profit, then it would be unrealistic to think that anybody else is
>> going to buy the whole thing from you, at a profit for you, when you just
>> paid 4 times its equity value.

> Of course not... and if you did that, presumably, it'd only be because you see some serious growth potential. 

Well, that's the only context where Apple being valued at its market cap
even makes any sense.  That $740 billion dollar market cap does not represent
some war chest that Apple has at its disposal.  It only represents what it
would take to buy all of the company's outstanding stock.  IOW, to buy
the whole company.  Outside of that scenario, what possible meaning does
market cap have to an investor, or to Apple itself, other than as a
curiousity to be noted.  "Is Apple going to be the first trillion dollar
company?!"  That question has no meaning whatsoever unless they are
approaching a trillion dollars in equity.  And they have a long way to
go to get there. 

>>  If the idea is to keep the company and
>> run it, because it has a great return on assets, you're not going to
>> want to wait to 20 years to break even on an outrageous purchase price.

> You seem to be saying market cap means nothing, that it's better to uses Assets - liabilities. But you're also leaving out the answer to the most fundamental question:

> How are the assets valued completely devoid of the market that would place a value on them?

The assets have a value in the markets where they would be sold, as is
reflected on the company's balance sheet where the company lists their
estimated value.  Those assets would not be sold on the *stock market*,
other than stocks in *other companies* which this company might own,
so I don't see why you keep trying to link this company's assets to
its own stock value.  The stock value could drop to zero or soar to
$1000 per share tomorrow.  Neither scenario would have any effect on
the intinsic value of company assets, such as real estate, equipment,
cash in the bank, accounts receivable, etc.

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Thread

It was bound to happen sooner or later "Ezekiel" <zeke@nosuchemail.com> - 2015-04-10 16:12 -0400
  Re: It was bound to happen sooner or later Tomas <tgif9fri@numo.net> - 2015-04-10 16:15 -0400
    Re: It was bound to happen sooner or later "Ezekiel" <zeke@nosuchemail.com> - 2015-04-10 16:29 -0400
      Re: It was bound to happen sooner or later Tomas <tgif9fri@numo.net> - 2015-04-10 17:20 -0400
  Re: It was bound to happen sooner or later Steve Carroll <fretwizzer@gmail.com> - 2015-04-10 13:33 -0700
  Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-10 22:07 +0000
    Re: It was bound to happen sooner or later "Ezekiel" <zeke@nosuchemail.com> - 2015-04-10 19:20 -0400
      Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-11 00:19 +0000
        Re: It was bound to happen sooner or later "Ezekiel" <zeke@nosuchemail.com> - 2015-04-11 09:08 -0400
          Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-11 14:45 +0000
            Re: It was bound to happen sooner or later DFS <nospam@dfs.com> - 2015-04-11 12:21 -0400
              Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-11 16:58 +0000
                Re: It was bound to happen sooner or later DFS <nospam@dfs.com> - 2015-04-11 22:00 -0400
            Re: It was bound to happen sooner or later Steve Carroll <fretwizzer@gmail.com> - 2015-04-11 09:43 -0700
              Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-11 17:17 +0000
                Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-11 17:20 +0000
                Re: It was bound to happen sooner or later Steve Carroll <fretwizzer@gmail.com> - 2015-04-11 11:58 -0700
                Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-11 20:02 +0000
                Re: It was bound to happen sooner or later Steve Carroll <fretwizzer@gmail.com> - 2015-04-11 13:56 -0700
                Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-11 21:48 +0000
            Re: It was bound to happen sooner or later "Ezekiel" <zeke@nosuchemail.com> - 2015-04-13 14:01 -0400
              Re: It was bound to happen sooner or later Snit <usenet@gallopinginsanity.com> - 2015-04-13 11:21 -0700
              Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-13 19:24 +0000
                Re: It was bound to happen sooner or later "Ezekiel" <zeke@nosuchemail.com> - 2015-04-13 16:04 -0400
                Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-13 20:35 +0000
                Re: It was bound to happen sooner or later Steve Carroll <fretwizzer@gmail.com> - 2015-04-13 14:13 -0700
                Re: It was bound to happen sooner or later owl <owl@rooftop.invalid> - 2015-04-13 21:52 +0000
              How many barrels of oil will the stock produce ? Jeff-Relf.Me <@.> - 2015-04-13 23:42 -0700
                Re: How many barrels of oil will the stock produce ? "Ezekiel" <zeke@nosuchemail.com> - 2015-04-14 13:37 -0400
                How many barrels of oil will the stock produce ? Jeff-Relf.Me <@.> - 2015-04-14 10:55 -0700
                Re: How many barrels of oil will the stock produce ? "Ezekiel" <zeke@nosuchemail.com> - 2015-04-14 15:20 -0400

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