Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.2 9/18/84; site amdahl.UUCP
Path: utzoo!utcs!lsuc!pesnta!amdcad!amdahl!ems
From: ems@amdahl.UUCP (ems)
Newsgroups: net.rumor
Subject: Re: Whither the gurus (windy reply) (actually stock price)
Message-ID: <1267@amdahl.UUCP>
Date: Tue, 12-Mar-85 14:53:17 EST
Article-I.D.: amdahl.1267
Posted: Tue Mar 12 14:53:17 1985
Date-Received: Wed, 13-Mar-85 03:41:34 EST
References: <1650@seismo.UUCP> <2691@pesnta.UUCP>
Organization: Circle C Shellfish Ranch, Shores-of-the-Pacific, Ca
Lines: 36

... long discussion of ills of companies ...

> You know, if I didn't know better I would swear that the whole idea of a
> Stock Market (where investors determine the fate of companies) is bad news for
> American companies.  Its like having a gun pointed to your head all the
> time.  Each quarter, you had better make more money than the last quarter
> or you'll get your head shot off.   Doesn't really allow you the freedom to
> explore new market areas since you run the risk of having a bad quarter or
> two.  Whats wrong with making enough money to paay all your bills and have
> a little left over in the bank for a rainy day?  Why must companies have
> 35%, 55%, 1000% ruturn on their investments?

After the stock is sold, the price of the stock is not real
important to the company in any short term way.  The stock price
is only of interest in that:
1) You may want to sell more to get more capital
2) If it drops too low someone may try to buy you out
3) If it is too low for too long, the stockholders may vote to
   get new management.
These are almost always multiple quarter phenomenon.  The
emphasis on short run mostly stems from bad managment practices
and American corporations promoting people for the wrong reasons.

The Japanese (Yes, YAJapanese comparison ) have a stock market, they
also have a long range orientation in management.  That is why
they don't fall into the 'ship it NOW' trap.  They manage to make the
company work better and let profit follow of its own accord.
(It is alway important to remember which is the cause and
which is the effect...)
-- 

E. Michael Smith  ...!{hplabs,ihnp4,amd,nsc}!amdahl!ems

Comedo ergo dorum

This is the obligatory disclaimer of everything.