Do You Believe That I Will Help You Move To The Next LevelDo You Believe That I Will Help You Move To The Next Level. E-book. Formato EPUB - 9791222467436

The wide gap between what the financial community thinks about a stock and the conditions that actually affect it can persist for several years. However, sooner or later this bubble will burst. When a stock sells at too high a price due to unrealistic expectations, sooner or later, many shareholders will get tired of waiting. Their selling of the stocks they hold will quickly reduce the purchasing power of those who still cling to their old judgments. After that, the stock price dropped sharply. Sometimes the new insight that follows is very accurate. However, often this reassessment carried out under conditions of psychological pressure due to falling prices will cause negative effects, leading to a new assessment of the financial community that is mainly more negative than the original assessment. what happens in reality. This observation will remain for a while. However, when this happens, consequences similar to those of overly favorable reviews arise. The only difference is that the process is reversed. It will take several months, or years, to replace this scenario with a more favorable scenario. However, when satisfying income increases, it will happen sooner or later.
Lucky shareholders—those who don't sell their stocks when they start to rise—will reap huge profits. That is a strong price increase thanks to the dual effect of increased profits per share at the same time as the P/E index increased. When the financial community correctly determines that a company's fundamentals (now viewed in a new perspective) have more investment value than previously perceived, the levels The resulting increase in the P/E ratio often plays a much more important role than the actual increase in earnings per share. This is what actually happened to company G in the example cited.