(Myself, I sort of suspect that, if a stock doesn't pay dividends, it's mostly worthless. To quote some guy with a blog:
If you put your Mickey Mantle rookie card on your desk, and a share of your favorite non-dividend paying stock next to it, and let it sit there for 20 years. After 20 years you would still just have two pieces of paper sitting on your desk.) Maybe it would help to think of a sole proprieter running a small retail business who starts with perhaps $500k in personal equity. He pays himself a relatively meager salary and invests all other n...
I'm not sure if you'll find this interesting, but I quit smoking using something like the method you are describing. Basically I labeled the craving for nicotine as an entity apart from myself - I named it "the beast". So instead of thinking "I want a smoke" I'd think: "the beast is hungry." This didn't work all by itself (I had a lot of practice quitting) but it was the last of 5-6 attempts to quit and its stuck for nearly ten years now.
It can be defined by the net present value of the future dividends of the stock. Alternately, it can be determined by the per-share liquidation value of the company's assets (after creditors are paid).
So if the stock does not pay dividends, and never will, and the corporation's assets equal its liabilities, and always will, then the appropriate value of the stock is, in fact, zero? (Well, there are voting rights, but still...)
No, the value also includes the NPV of future net earnings, even if they are not currently being paid as dividends. When you value... (read more)