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Analyst cuts rating on Dish Network stock
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People often misinterpret the stock market. Stocks do not automatically equate to actual value of a company, but rather perceived value.
People make money either buy buying a stock they think will rise OR selling short (betting it will drop). Either situation requires both buyers and sellers.
Think about eating for a minute... before you eat, you are hungry. Once you eat, you aren't... and won't be again for a while... BUT food doesn't become worthless just because you aren't hungry. Similarly, a company doesn't immediately become worthless because people start selling the stock.
The ".com" stuff should have taught people a lesson, but that appears to have been a short-lived one. Many companies had high stock values almost completely based on hype without substance... then one day people realised there was no true value to the companies, and the bottom fell out.
Unfortunately, people continue to trade stocks based upon hype rather than substance... so I place very little importance on an analyst's rating of stock vs the value of the company.
By the same token... If Roger Ebert says a movie sucks, it doesn't necessarily mean I won't like it... doesn't mean it will lose money... and doesn't make it not exist. It just means one guy doesn't like it. Stock analysts are another form of "critic" really on some level.
People make money either buy buying a stock they think will rise OR selling short (betting it will drop). Either situation requires both buyers and sellers.
Think about eating for a minute... before you eat, you are hungry. Once you eat, you aren't... and won't be again for a while... BUT food doesn't become worthless just because you aren't hungry. Similarly, a company doesn't immediately become worthless because people start selling the stock.
The ".com" stuff should have taught people a lesson, but that appears to have been a short-lived one. Many companies had high stock values almost completely based on hype without substance... then one day people realised there was no true value to the companies, and the bottom fell out.
Unfortunately, people continue to trade stocks based upon hype rather than substance... so I place very little importance on an analyst's rating of stock vs the value of the company.
By the same token... If Roger Ebert says a movie sucks, it doesn't necessarily mean I won't like it... doesn't mean it will lose money... and doesn't make it not exist. It just means one guy doesn't like it. Stock analysts are another form of "critic" really on some level.
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When a company dumps the one thing that distinguishes them from the competition, I have to agree with Moffett. I sold 1/2 of what I still held when they released their latest quarterly report (of course, it's up a bit since then). That brought me to 1/4 of my original holdings. I have held that stock since the launch of Echostar 1. I can't help but think that someone else has taken Charlie's place the last couple of years and that he has a double (a not too smart double) running the company now. It's really too bad.
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