Re: Where’s the change?
in response to
by
posted on
Mar 04, 2024 03:56PM
"This is because companies often focus on long-term goals and strategies that might involve initial investments, potentially causing short-term decreases in stock prices. Additionally, companies might prioritize investing in research and development, focusing on employee satisfaction and retention, or improving customer satisfaction."
Those are exactly the reasons why financial health should be a top priority. A company cannot do all those without being financially healthy.
And this financial health concerns is also one of the main reasons why share price does not increase, despite the technological advances.
All of these, share price, financial health and even board mood are closely related. If financial health concerns are put to rest, investors would be more confident to invest, share price would increase; so most of this board's members' mood. Also, if additional funds are still needed, it would be much easier and less diluting to raise them with a higher share price, hence better financial health.
But as long as the company does not release news to show a healthy financial status (which could be sales - best case scenario -, highly regarded partners or other means to bring those needed funds to continue opeations), investors would be sitting on the side, the share price drops, so subsequent options for raising more funds are more limiting and taxing on existing shareholders.