With over 20 years' experience in finance, equity and capital markets, I have closely followed many
stocks and listed companies. Regularly, I have seen similar players in the same
industry with very different valuation multiples and share price behavior.
Interestingly, I noted that undervalued companies remained undervalued most of
the time. They did not rerate even when it is justified by fundamentals. The
main reason for this is that investors were disappointed by the company in the
past. They lost money by investing in it. For these reasons they applied a
discount to the company share price before even investing. In other words, they
just did not trust the company.
This led me to think about a fundamental concept that was not really looked at by the investor community: the impact of stock reputation, or in other words, the company’s reputation on the stock market. After protecting this concept, I founded a unique
This led me to think about a fundamental concept that was not really looked at by the investor community: the impact of stock reputation, or in other words, the company’s reputation on the stock market. After protecting this concept, I founded a unique
This blog is directed at financial analysts, fund managers and company management, with the purpose to analyze and exchange on this concept, and to see with concrete case studies the impact on share prices and company valuations.
