The price of a stock is determined largely by the present and future earnings per share, which, in turn, are determined by the knowledge and skills of their management team.
2006-07-12 04:34:40 · 8 answers · asked by ? 6 in Business & Finance ➔ Investing
---Listen to their conference call and see how they react to questions.
---Compare salary levels to other management teams in the same industry - if they're relying on salary to support a lifestyle, it could be a sign they're not as hungry to get the stock price up.
---Call investor relations at competitors and see if they can give you any color.
2006-07-12 04:47:50 · answer #1 · answered by tdsbu 2 · 0⤊ 0⤋
You're absolutely right, and yet, it is one of the hardest things to determine. Your best bet is to evaluate how successful they have been in growing earnings in the past, but you also need to be careful, because this won't give you a 100% complete picture. Also, a truly bad management team will try to puff up their numbers to make it look like earnings have been growing when they haven't (think Enron).
If any of us could determine the quality of management teams perfectly, investing wouldn't be nearly as challenging as it is.
Good luck to you.
2006-07-12 07:32:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Depends on what type of company, if it is a service company call them up as a prospect customer or with some type of bogus interest. Ask to speak to a Supervisor and then a Manager about the service/product. Companies earn thier reputation (and money) by word of mouth and the higher in the chain of command( as a prospect) you are able to get will denote the eagerness of the company to earn your business and the more business, the more growth thus resulting in higher earnings.
2006-07-12 04:42:53 · answer #3 · answered by Mick R 2 · 0⤊ 0⤋
If you want to buy stock. Let me give some advice based on experience.
I purchased stock with Suntrust in 1994 when it was 18 and now it is 75.2 I haven't checked it lately ,but how's that for a climb
I'm getting ready to sale and buy me a Cadillac Escalade. I've waited a very long time for this so its payday.
2006-07-12 04:39:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
In my opinion the simplest and best indicator of management quality is the share P/E ratio, which encapsulates what the market thinks of the company. Of course, nothing is infallible, but you will be right more often than not.
2006-07-12 12:58:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
What i believe you attempt to "get at" on your question is fee dominance. a great product this is in intense call for delivers a larger potential to command a earnings, and command correct cost expenditures. reported yet differently, buying agencies without ability to command a correct cost fee, or no call for, is marginalizing your funding dollar. As you mean, placed your money with the utmost enhance skill in the utmost enhance sector, and your returns are in all probability to exceed the market - in great section because of pricing skill. once that pricing skill starts to wane, that's time to have researched the subsequent chance so that you're waiting to transition into it.
2016-10-14 09:40:44 · answer #6 · answered by ? 4 · 0⤊ 0⤋
STOCK RATES HAS NO CONCERN WITH THE MANAGEMENT TEAM BECAUSE MANAGEMENT HIMSELF IS ENGAGED IN MAKING MONEY OUT OF THEIR SHARE STOCK NOT OUT OF THEIR GOODS STOCK.
2006-07-12 04:40:55 · answer #7 · answered by Swayam Prakash 3 · 0⤊ 0⤋
know what they going to do, if it is a sell then many will invest on their idea,
it is not a everlasting
2006-07-12 05:36:54 · answer #8 · answered by Henry W 7 · 0⤊ 0⤋