On Monday, April 27, 2009 at 11:46:38 (-0400) Doug Henwood writes: > >On Apr 27, 2009, at 11:38 AM, Bill Lear wrote: > >> I was also interested in the question that I raised about how stock >> prices could affect prospects for getting loans for a company. The >> basic argument I made to a co-worker is that stock markets are not >> very good for raising new capital --- at least they are not used very >> much for that purpose. The counter-argument is "Au contraire, stock >> valuations are used to get financed". And this, I believe, is very >> dubious. > >Most companies aren't public, so they don't have a stock price. But >there's no doubt that for public companies, the stock price does >affect perceptions of the firm's creditworthiness. And the looks, from >admiration to pity, the CEO gets when he steps onto the links.
Ok, but when someone is going to make a loan to a company, wouldn't they be complete idiots to just look at the stock price? Wouldn't they take a serious look at the "fundamentals" like EBITDA and others, perhaps with stock price just being a secondary concern? Bill _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
