A Quote by Carol Loomis

Approaches to determining stock values vary, but fundamentally, each company judging itself undervalued is saying that its future stream of earnings justifies a higher price than the stock market is willing to accord it.

Carol Loomis

Quote Author

Carol Loomis
American - Journalist
Born: June 25, 1929

If a lot of people feel like this company is undervalued and go out and buy the stock, the stock price will go up reflecting the higher value of this company. You might have information because you trade with them or because you've done some research on them.

Robert F. Engle

If you have information that a company is not as good as its stock market valuation, you don't have a way to sell that stock unless you already own it. And so that information doesn't get incorporated in the company's stock price as fast if you don't allow short selling.

Robert F. Engle

The other dynamic keeping the stock market up - both for technology stocks and others - is that companies are using a lot of their income for stock buybacks and to pay out higher dividends, not make new investment,. So to the extent that companies use financial engineering rather than industrial engineering to increase the price of their stock you're going to have a bubble. But it's not considered a bubble, because the government is behind it, and it hasn't burst yet.

Michael Hudson

When you buy enough stocks to give you control of a target company, that's called mergers and acquisitions or corporate raiding. Hedge funds have been doing this, as well as corporate financial managers. With borrowed money you can take over or raid a foreign company too. So, you're having a monopolistic consolidation process that's pushed up the market, because in order to buy a company or arrange a merger, you have to offer more than the going stock-market price. You have to convince existing holders of a stock to sell out to you by paying them more than they'd otherwise get.

Michael Hudson

If you can follow only one bit of data, follow the earnings - assuming the company in question has earnings. I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.

Peter Lynch

A broker who discovers an undervalued stock does not advertise it until he has bought a large enough quantity without letting the price go up. When the brokers' connection with a stock becomes public knowledge, it is usually a sure sign of manipulation and that the broker is seeking to drive up the price.

Sucheta Dalal

Calculate a stock's price/earnings ratio yourself, using Graham's formula of current price divided by average earnings over the past three years.

Benjamin Graham

The future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty actually is the friend of the buyer of long-term values.

Warren Buffett

I think there are a lot of people out there that are speculating in the stock market. They have all kinds of tech stocks or social media stocks. If you want to gamble in the stock market, I would much rather gamble on a mining stock than a social media stock.

Peter Schiff

The stock market really isn't a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price.

Peter Lynch

Going public today is fraught with peril on many levels. One is earnings guidance. If you miss guidance, the stock price becomes very volatile. Short sellers can put a tremendous downward pressure on the stock.

Ben Horowitz

iStockphoto was revolutionizing the stock photography industry, establishing a whole new business model and democratizing stock art for everyone. It made sense for the industry-leading stock image company to take iStock to the next stage of growth, serving all markets at every price point.

Bruce Livingstone

There are several things that can create an alpha - stock buybacks are one. High dividend yields are another, especially nowadays because the stock market yields more than the banks and the tenure treasury. But by and large, it tends to be companies with a strong cash flow, rising sales, accelerated earnings, a profit margin expansion.

Louis Navellier

Stock prices relative to company assets are no better at signaling the likelihood of future earnings growth than they were the day the Titanic sank, and risk management is a good deal worse.

Timothy Noah

Monetary conditions exert an enormous influence on stock prices. Indeed, the monetary climate - primarily the trend in interest rates and Federal Reserve policy - is the dominant factor in determining the stock market's major direction.