Yasoon’s Reviews > Financial Statement Analysis and Security Valuation > Status Update

This is how I die.

Issuing new shares doesn’t affect Value per share, but it does increase the total value of firm. While it might look like things are good in form, issuing new shares could be a sign of bad performance in firm and it can change the prices in a negative way. “We’re doing a shitty jib here, so we have to issue shares to cover up our thing.” The equity brought to firm by issuing new shares can be used in new investments.

Why simple multiples can suck? An Example. They ignore some heavy-weighted elements of a firm, such as its intangible assets, such as Brand's value. The Brand value can sometimes be as much as its book value or at least, be large enough to significantly change the reliability of multiples.

:نویسنده اینچنین می‌فرماید که
سوال اصلی این نیست که الآن مزیت رقابتی‌ت چیه. سوال اینه که تا کِی می‌تونی این برتری رو حفظ کنی؟ بازیگرای نظام رقابتی دارن هرلحظه می‌رن جلو. باید بتونی بفهمی که کی ازت رد می‌شن
"Microeconomics tells us that competition drives away abnormal returns... With few exceptions, the forces of competition are at play, and the critical question is how long those forces take to play out"