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Originally Posted by xoxoxoBruce
I remember reading in Barrons, a long time ago, there is(or was) an accepted formula for determining the stocks value.
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This sort of thing worked much better a generation ago when most investing was done by institutional managers who controlled large accounts and made decisions based on P/E ratios, and other new-fangled fancy math stuff. Today, the shift has moved toward alot of people with 10k in an e*trade account making their own trading decisions, and they're not being at all reasonable or sophisticated about it. In that type of scenario, public sentiment about your company is a real factor.
There's a phenominal book called "Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality" by Terry Burnham. It analyzes how animal instinct (pattern recognition, fear of failure, fight or flight response) influences mass market decisions.
-ml