The US stock market, as measured by the monthly real (inflation-adjusted) S&P Composite Index, or S&P 500, has increased 3.3-fold since its bottom in March 2009. This makes the US stock market the most expensive in the world, according to the cyclically adjusted price-to-earnings (CAPE) ratio that I have long advocated. Is the price increase justified, or are we witnessing a bubble? One might think the increase is justified, given that real quarterly S&P 500 reported earnings per share rose 3.8-fold over in essence the same period, from the first quarter of 2009 to the second quarter of 2018. In fact, the price increase was a little less than equal to earnings. The dailyReport Must-reads from across Asia - directly to your inbox Of course, 2008 was an unusual year. What if we measure earnings growth not from 2008, but from the beginning of the administration of US President Donald Trump in January 2017? Over that 20-month interval, real monthly US stock prices rose … [Read more...] about Do spectacular earnings justify spectacular US stock prices?
Angkor gold stock price
source Business Insider MoviePass shareholders authorized a 1-for-250 reverse stock split this week designed to get the company’s stock price above $1. The move could help its parent company – Helios & Matheson – avoid being delisted by Nasdaq, if it can get its market cap above the $50 million minimum. Shares crashed more than 30% when they opened Wednesday following the reverse split. Helios & Matheson, the parent company of MoviePass, threw a Hail Mary on Tuesday, performing a massive 250-for-1 reverse stock split to get its stock price above the Nasdaq’s minimum requirement of $1. The reverse stock split, which it received authorization for at a special meeting on Monday, skyrocketed its stock price to $22.50 per share – 250 times Monday’s closing price of $0.09. However, it quickly sank 35% when markets opened Wednesday, hitting a low of $13.18. While the stock is still trading above $1, … [Read more...] about MoviePass’ parent company threw a Hail Mary to raise its stock price — but it already seems to be backfiring
By Michael Liedtke The Associated Press Wed., April 4, 2018 SAN FRANCISCO—Spotify’s opening act on Wall Street struck a chord with investors betting the unprofitable company’s trend-setting music streaming service will maintain its early lead over Apple and other powerful challengers. After several hours of anticipation Tuesday morning, Spotify’s shares traded as high as $169 (U.S.) in their stock market debut before falling back slightly. The stock closed at $149.01 — well above its previous high of $132.50 in deals worked out during Spotify’s 12-year history as a privately held company. The stock market’s warm welcome left Spotify with a market value of about $27 billion, according to FactSet. By comparison, internet radio station Pandora Media’s market value stands at $1.2 billion nearly seven years after that company went public. Read more: Spotify direct listing on deck after music steaming giant forges ahead as … [Read more...] about Investors are grooving to Spotify’s IPO as its stock price closes at $149
Spotify’s direct public offering is set for Tuesday morning, and tech companies, traders and investors will be watching to see how the company’s “novel method” for going public goes. The firm is listing on the NYSE without underwriters, without a set price, without a set level of supply of shares, and without a lock-up on existing investors. Daniel Ek, chairman and CEO of Spotify, addressed Spotify’s unusual method for going public in a note on Monday, setting out why Spotify is doing things a little differently. He said: “Normally, companies ring bells. Normally, companies spend their day doing interviews on the trading floor touting why their stock is a good investment. Normally, companies don’t pursue a direct listing. While I appreciate that this path makes sense for most, Spotify has never been a normal kind of company. As I mentioned during our Investor Day, … [Read more...] about Spotify’s using a ‘novel method’ to go public, and it means the stock price could ‘decline significantly and rapidly’
The stock market is crashing, so we’re told. And that’s a good thing.Actually, the market isn’t crashing. It’s simply returning to normal. With any luck, we will soon be able to buy stocks at reasonable prices again. For what seems like forever, we’ve had to pay ridiculous premiums for stocks trading far above their true value as indicated by underlying corporate earnings power, current and projected.This is how bubbles burst, dramatically. At one point during Monday’s stunning drop in stock prices, the percentage collapse was the biggest on record, deeper than the Great Crash of 1929. At the close of trading Monday, the S&P 500 was down 4.1 per cent, and the S&P/TSX composite index was off 1.7 per cent. Stock prices were down on every major bourse worldwide. … [Read more...] about Stock prices are falling — but this is no meltdown