Pollock said that he recently heard from the Caldwell Economic Development Council that about 18 small California manufacturers are about to make the same move, and he anticipated that they will see their business valuations go up considerably.
FORBES: As Small Auto Businesses Flee California, Their Takeover Prospects Increase
For example, consider shifts in the economic data, prevailing valuations, business conditions and revisions to earnings estimates.
Yet young technology companies with unproven management teams and business models are commanding nosebleed valuations.
Enjoy the gains, but monitor your holdings for excessive valuations, negative business trends and weakening financials.
The boom in prices ushered in a time of profits and high valuations in a business where bail-out and bankruptcy had previously been the norm.
But he notes that Street valuations for that business have been rising, driving DTV shares higher, with an extra boost from an aggressive share repurchase program.
FORBES: DirecTV: With U.S. Growth At Record Low, Stock Stumbles
Pay attention to valuations and to business trends.
FORBES: Raising The Debt Ceiling May Throw A Wrench Into The Presidential Cycle For Stocks
Enron was once worth much more on sky-high valuations for its broadband business--and company insiders took advantage by cashing out.
Even in the home of consumer sites such as ebay and eTrade, which steal the headlines and achieve dizzying valuations, e-business is the greater part of online transactions.
There are also signs that valuations, even in the business software space, have been too rich.
FORBES: What Facebook's Flop Means For Technology IPOs Later This Year
As I said when discussing Pandora, a business, to gain these sorts of heady valuations, needs to have some sort of lock in, some uniqueness to it.
The company's continued growth, engagement and business potential has attracted growing interest from investors who have put sky-high valuations on a company with little to no revenue that is unprofitable.
WSJ: As Pinterest Grows, Startup Seeks $2.5 Billion Valuation
As a result the investor takes risks, and the companies seeking investment may need to concede lower valuations than might otherwise be appropriate, while those companies pursuing new business opportunities must assess the risk of greater competition in the absence of protection.
But with B-share holders calling the shots, such firms tend to underinvest, leading to lower sales growth and valuations than with single-share-class firms, according to a study by Harvard Business School's Paul Gompers, Stanford's Joy Ishii and Wharton's Andrew Metrick.
Peter Diamandis believes that Silicon Valley technologies will continue a path of billion dollar valuations overnight while traditional multinational corporations, relics of the industrial age, will continue to go out of business over the next 2-10 years.
应用推荐