The share in BA Bhd, on old established but sound engineering company have been steadity decline in recent years despite unspectacular but reasonable profits and regular dividends. Brown is thinking of buying some shares in this company. Discuss why the share may be declining in value and what propects for growth Brown may foresee.
2007-01-25 20:52:57 · 2 answers · asked by oks 1 in Education & Reference ➔ Homework Help
The decline could be as a result of the company's age. It is old and established.......suggests that it is not exactly modern in updates. However, for the same reason it will more than likely improve. The company has been around a long time because somebody has smarts! They will probably be updating their stuff...that's what keeps them running, and being around a long time while sound engineering has steadily improved, they know that change is the only way to stay alive. So while their stock is down, Brown will buy up some expecting the comapny to recognize they need an update, and once they have updated, their solid, established name will sell itself to consumers, making the stock soar once again.
2007-01-26 00:52:42 · answer #1 · answered by dantooine_81 2 · 0⤊ 0⤋
Well, some people buy shares in a company that is doing god awful because they reason that they can't get any worse. The price for the stock is dirt cheap and buy a lot. So even if it goes up a little, you are rich.
2007-01-25 21:02:27 · answer #2 · answered by Lord Sesshomaru 4 · 0⤊ 0⤋