Are High Share Prices Good or Bad? Answer: Yes.

The Tradesports Maven (just added to my blogroll, along with Midas Oracle, because I'm on a politics-and-gambling binge today) asks: What affect does not splitting a stock have on a company's brand equity?

I suspect there isn't a quantitative change in perceived value; it's mostly qualitative. Companies like Google, Berkshire Hathaway and The Washington Post are necessarily seen as better, but they're certainly seen as 1) Permanent, and 2) Leaders in quality, if not volume. Those qualities can certainly be assets, especially during a flight to quality, but during a garbage-stock runup (à la E-Future's recent post-IPO move from $7 to $48 in about two weeks), they'll get left in the dust. In the long run, it's probably better to have better stock performance (and thus more access to capital) when everyone else doesn't, but that means that a high share price pays off over a decade or more, not quarter-to-quarter. Which, perhaps, is why $500-plus stock prices are so rare and deserve so much attention.

This blog is no longer being updated. Visit ByrneHobart.com for more blogging, or pay a visit to my new Internet stock research and M&A due diligence company.

posted by Byrne Hobart at 12:54:00 PM


Blogger internet_income_business_opportunity_guy said...


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But I prefer forex trading because it is 1000 easier, more profitable and faster than stock trading.

I cannot believe that anybody can be trading stocks when they would rather have great fun trading forex, the easiest and fastest way to make money on earth

8:02 PM  
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What I can't believe is the shameless advertising that just happened ... and how that comment has nothing to do whatsoever with the blog.

Course mine doesn't either but oh well...

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As a note, to the first commentor, allow me to credit Wikipedia for telling me about this one:


'nough said.

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