Re:Flood of Oil Is Coming, Complicating Efforts to Fight Glo...
by mxschumacher on Monday November 04, 2019 @11:47AM
(#21443420)
The scenario you paint is purely hypothetical and far removed from reality. Markets are believed to be mostly efficient. If a business is highly profitable and conservatively leveraged, it will be able to attract capital (either equity or debt)
Finding a business where the fundamentals and the price converge is extremely profitable, it's what all investors, especially hedge funds, do. A large convergence is unlikely to exist in a market system.
Finding a business where the fundamentals and the price converge is extremely profitable, it's what all investors, especially hedge funds, do. A large convergence is unlikely to exist in a market system.