View Single Post
Posts: 840 | Thanked: 823 times | Joined on Nov 2009
#1777
Originally Posted by specc View Post
It doesn't work like that. A big investor set the terms and is often a participant at board level. Who do you took the final decision that Nokia should go all WP? The board. To go WP may even have been the main term for continued investment by the main investers. How the "industry" reacts means nothing, what the stock price becomes means nothing. The only thing that matters is to stay focused and make it happen. Go for the possibilities, the oppurtunities.
I understand that the board make the decisions and that large stakeholders run things. What I don't understand is how an investor is not speculating if they "believe" that it will turn a profit. Still confused by the explanation. Are you explaining primary capital markets? What exactly do you mean by a big investor? How the public (or "industry" as you call it) reacts is of great importance in securing capital. The risk will always be there for the large investors who do the underwriting, or the individual stakeholder with or without privileges. Staying focused and making it happen stops when you run out of money and securing that money is based on risk. Nokia's "Junk status" is in fact a measure of this risk, when it hits BB+ it becomes "speculative grade", when it goes below (which it has done), it means it's high risk, don't invest if you plan to profit with a degree of certainty.

http://www.standardandpoors.com/rati...nd-faqs/en/us/

Last edited by Cue; 2012-07-08 at 10:18.