ST Alpha - "Makes sense to me." (Reading a Post)

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In response to "I'm of the opinion that investors should flee companies that disrespect their customers so badly that they get fined by the FTC. -- (link)" by Beryllium

Makes sense to me.

Posted by Super Daddy Princess (aka znufrii) Jul 12 '19, 17:05

Uncertainty = risk, which holds down the stock price. Knowing the amount of fine removes the uncertainty, thus the stock price goes up because of the lower risk. The amount of the fine itself is immaterial to the fundamental value of the company.

Responses:

Spot on -- nm - Bacon Jul 12, 17:19
To me the risk is that they won't learn from their behaviour, which means that it will continue. And that which continues, worsens. -- nm - Beryllium Jul 12, 17:10 1
- Although to be clear, I'm not suggesting it doesn't make sense. I'm saying it's not right, from a moral/ethical standpoint, to make money from them. -- nm - Beryllium Jul 12, 17:11

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Makes sense to me.

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