I disagree with your certainty, Saku. That's best left to results in papers, as you correctly point out.
On Wed, May 27, 2020 at 9:07 AM Saku Ytti <s...@ytti.fi> wrote: > > > On Wed, 27 May 2020 at 10:00, Mel Beckman <m...@beckman.org> wrote: > > Hertz car rental has the #1 product in its industry, even its major >> competitor Avis agrees (“We’re number two“:-), and yet Hertz stock is >> plunging towards zero even as we speak. Stock price has nothing to do with >> product quality. Theranos, for example, had a completely fictional product, >> yet it stock price skyrocketed. >> > > I agree with the sentiment that stock value cannot be used to glean > ~anything, certainly not something specific like 'marketability of > product'. I'd be interested in reading paper where stock value is > determined to be more reliable than random metric on anything except stock > value. > > However Hertz depreciation is caused by the anticipation that debtors will > receive almost all of the equity, diluting the current owners by massive > ratio. The value tries to reflect post-dilution value. My Stetson-Harrision > analysis tells that current owners will end up owning less than 20% of > Hertz and more than 80% goes to debtors. > So by that logic, 80% of Hertz value is currently not trading. > > -- > ++ytti > -- Ing. Etienne-Victor Depasquale Assistant Lecturer Department of Communications & Computer Engineering Faculty of Information & Communication Technology University of Malta Web. https://www.um.edu.mt/profile/etiennedepasquale
