Circuit City to liquidate V2

[Philip Miller Tate]

>
Maximize profit = minimize losses.

Assume that the minimization of losses equation is modelled by a  
polynomial, the only constraint upon which is that one of the  
solutions is x = 0. This represents the solution that zero commerce =  
zero losses, i.e. doing nothing costs nothing.

Discuss why short-term profiteering, plus a constant requirement of  
expansion, as required by International Law, always eventually leads  
to this solution. Conclude your essay with the word <sigh>.


Phil M1GWZ





> Andre:
> The problem with above is that the CEOs and CFOs are using very  
> short-term
> yardsticks to keep shareholder dividends artifically high, at the  
> expense of
> long-term viability.
>
> I think Mike's point can be that while this philosophy does keep  
> dividends
> up, the long-term viability of the company is being destroyed from  
> within.
> Once that company fails due to mismanagement, it becomes clear that
> shareholder value is no longer there.  How much value do the  
> shareholders
> get from Circuit City once it's gone, as an example? Dividends of  
> $0, and
> stock selling price of $0 does not provide much shareholder value.
>
> Hopefully these ratbas****s can be sued for their irresponsibility.
>
> One can say that purchasing stock is inherently a crap shoot, and  
> too bad
> for you if you buy stock and lose.  But, over the last few years it  
> seems
> that CEOs and CFOs LIVE to meet the next quarterly meeting with  
> Wall Street
> analysts.  In my opinion, more should tell Wall Street to go pound  
> sand, and
> do what's best for the long-term stability of the company.  But, being
> realistic, instant gratification is more visible.
>
> It's like crack for CEOs.  Do the stupid thing to keep Wall Street  
> happy.
> Interestingly, in at least one occassion close to me, Wall Street has
> already branded the company (indeed the whole industry) as  
> "traditional" and
> in decline.  So, trying to please the street will not help the  
> company much.
> They are destroying the company while trying to curry favor from  
> someone
> that will never give it.
>
> Of course, the stockholders are interested in their dividends, so  
> as long as
> those are propped-up, they are happy, instead of worrying about if the
> company still exists to pay those dividends two years from now.
>
> Off the soapbox.
> Terry
>
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