Let me try to explain it to you in a very simple way....A strong stock price does help both the employees and the company, in the long run. and yes it also helps the Balance sheet, income statement
Let me walk you into typical senario, and let me me answer as best as I can given the short
blip on his message board.
to your remark about stock price increase company expands stock price decrease company lays off
x amout of people.
expansion of a company plant and equipment can easly be thru a secondary stock issuance
also with that capital to pay new hires, if the stock is low (PE) to its peers (ckeck Canon)
the company may not expand, but not necessary lay off peple should it drop, as long as the model
Also via a secondary the company may chose to reduce debt, which is a major item on the Balance sheet. Add to it a reduction in Debt payments to bond holders, a plus to the income statement.
also Stock options to employees,
while a proper balance is important, the long term stability , investor confidence is important, what I do find is the curent outsourcing by many top fortune 500 companies is contrary to long term heath
of the US economy, now that another topic..
You could not be more right. It is important to manage by facts. With that being said, lets compare returns at the close of market today with some of the XRX competitors. After all with
the raise in stock dividend XRX announced, we should clearly be at least in the middle of today's returns? OOPS, will look at this again in a couple of weeks. I am sure it will correct itself by then..