In today’s briefing:
- Is the Challenge of Raising the Stock Price Valuations Ultimately the Quality of Management?
Is the Challenge of Raising the Stock Price Valuations Ultimately the Quality of Management?
- Increasing numbers of companies with P/Bs below 1x suggest that they failed to deliver to investors plan that would have increased their corporate value, or that such plan didn’t materialize.
- While P/B has remained mostly in range, the increase in the number of companies with low P/Bs can be attributed to the widening gap in profitability among companies.
- If the difference in profitability depends on the development and execution of management strategies, it depends on the quality of management. The appointment of directors will be very important.
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