According to chapter 9. "Capital markets and media firms," the role of stock makets in media companies' financial issues seems to be increasingly important. The other piece suggests indicators of financial health: sales revenue growth or decline; change in results; debt growth or decline; change in asset value; reinvestment; productivity; capacity utilization; employee turnover; personal skills and knowledge; and resource dependence.
These indicators suggested seem important factors affecting the value of stock of the media companies. But I am wondering if I, "as a soon-to-be consumer buying stocks of media companies for this class," have data about this information, which may affect my personal revenue. If yes, where and how I can get this data and how should I weight among these indicators?
Furthermore, is there any other important considerations when I am about to buy stocks of media companies? (I have no idea at present :D )
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I think, as an investor, it's always good to get a wide range of "expert" views on the stock to formulate a median idea of how the stock is doing and will do. It's also a good idea to compare a company's actual revenue growth on a quarter-by-quarter basis to see if revenue is growing or falling. I tend to believe that technology trends cause a shift in actualized revenue, so knowing what a company is creating or is planning to create might give us a better idea of how they are using their revenue to grow. Then again, most company's with expansive product lines run the risk of failing in too many areas (Google, WPO aside). Hmm...
ReplyDeleteSuch indicators are available on sites like Yahoo Finance or Google Finance.
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