layoffs - how do they reflect share price?

Discussion in 'Trading' started by chimike018, Jan 27, 2009.

  1. with all the layoff announcements already released and more on the way, has anyone considered the divergence of a significant layoff annoucment vs share price?

  2. I don't really understand the question, can you elaborate more? Layoffs probably just confirm the negative growth that's already been priced in.
  3. well, fundamentally you're right..but i mean more, how layoffs impact the same-day trend of a stock. for example, cat announces 10% work-force released and 18 months ago that would've signaled prudence and perhaps brought the bull, recently layoffs have been a sign of uncertainty and continued insolvency which have lead to bearish divergence to increasing layoffs.

    i've been using it as an indicator and it's been pretty accurate in 09
  4. If I'm not mistaken, layoffs are considered a cost saving measure that can increase earnings per share.
  5. you're not mistaken so again as said above, fundamentally they're a positive and historically the market has responded bullish to job cuts for that same reason. however, now with the uncertainty and low confidence, more recently news of layoffs have resulted in immediate downward trends.
  6. Since GOOG announced their recent layoffs, their stock has been making big gains
  7. tradersboredom

    tradersboredom Guest

    fundamentally layoffs are bad
    historically layoffs have no correlation to the value of stocks.

    it's a fake correlation between layoffs and value of stocks.

    morons in wall street think layoffs are good. though

  8. if only every stock followed the same trend.

    there's always exceptions.
  9. tradersboredom

    tradersboredom Guest

    rven goog growth is waning are slowing down.

    big companies have a limit to growth like msft, goog, gm and they usually end up buying companies to grow.

    these large companies like citigroup have the too big to grow and manage syndrome.

  10. tradersboredom

    tradersboredom Guest

    as an investor the next msft or next goog when they pre-ipo are what you want.

    #10     Jan 28, 2009