Correct me if I'm wrong here Slava, but is the resistance level (DOW at 9000, NASDAQ at 1550) the level in which we are talking about the actual value of the equity? i.e. If I am to understand, the value of a stock = the net equity (assets-liabilities) + the value of its profitability?
I was watching a 1 hour lecture given by Paul Krugman who was talking about how this recession differs from the past few; that unlike past ones, we aren't just talking about paper losses, but actual value (equity) is being lost, companies going bankrupt or leaving the USA.
Even still, I was taking a gander at a list of 30 stocks I'm watching carefully (12 I tend to buy into, 5 I'm in already) and most of those, the market cap is actually below the net equity, and its ROE, OM and PM are still quite strong. (Am I correct in saying the market cap = net equity of the business?)
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