Transparency for Better Stock Investing – Part 5 of 5
Stock market conventions favor management teams. Trading decisions depend on information. It is only natural to buy and sell stocks largely on the basis of what executives and analysts present. Quarterly meetings, stock reports, and press releases dwell on management choices. Rejected alternatives are almost never presented. The wily investor will ferret out this information. It can be a source of top stock picks. There are three major reasons why alternatives, rejected by people who manage stock values, may have significant values. One is the competition law. Companies involved in inorganic growth moves may discard valuable brands simply because they…