Circuit City to liquidate V2
Philip Miller Tate
Philmt59 at aol.com
Mon Jan 19 13:49:31 CST 2009
Maximize profit = minimize losses.
Assume that the minimization of losses equation is modelled by a
polynomial, the only constraint upon which is that one of the
solutions is x = 0. This represents the solution that zero commerce =
zero losses, i.e. doing nothing costs nothing.
Discuss why short-term profiteering, plus a constant requirement of
expansion, as required by International Law, always eventually leads
to this solution. Conclude your essay with the word <sigh>.
> The problem with above is that the CEOs and CFOs are using very
> yardsticks to keep shareholder dividends artifically high, at the
> expense of
> long-term viability.
> I think Mike's point can be that while this philosophy does keep
> up, the long-term viability of the company is being destroyed from
> Once that company fails due to mismanagement, it becomes clear that
> shareholder value is no longer there. How much value do the
> get from Circuit City once it's gone, as an example? Dividends of
> $0, and
> stock selling price of $0 does not provide much shareholder value.
> Hopefully these ratbas****s can be sued for their irresponsibility.
> One can say that purchasing stock is inherently a crap shoot, and
> too bad
> for you if you buy stock and lose. But, over the last few years it
> that CEOs and CFOs LIVE to meet the next quarterly meeting with
> Wall Street
> analysts. In my opinion, more should tell Wall Street to go pound
> sand, and
> do what's best for the long-term stability of the company. But, being
> realistic, instant gratification is more visible.
> It's like crack for CEOs. Do the stupid thing to keep Wall Street
> Interestingly, in at least one occassion close to me, Wall Street has
> already branded the company (indeed the whole industry) as
> "traditional" and
> in decline. So, trying to please the street will not help the
> company much.
> They are destroying the company while trying to curry favor from
> that will never give it.
> Of course, the stockholders are interested in their dividends, so
> as long as
> those are propped-up, they are happy, instead of worrying about if the
> company still exists to pay those dividends two years from now.
> Off the soapbox.
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