Comments on: Fundamental analysis shows that Green Leaf Tea Company is fairly valued. Then Green Leaf Tea Company…? http://www.how2loseweightquickly.com/green-leaf-tea/fundamental-analysis-shows-that-green-leaf-tea-company-is-fairly-valued-then-green-leaf-tea-company Raise your Metabolism and Lose Weight while Boosting your Energy! Thu, 05 May 2011 02:51:59 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: sensekonomikx http://www.how2loseweightquickly.com/green-leaf-tea/fundamental-analysis-shows-that-green-leaf-tea-company-is-fairly-valued-then-green-leaf-tea-company/comment-page-1#comment-6157 sensekonomikx Thu, 22 Jul 2010 19:26:59 +0000 http://www.how2loseweightquickly.com/green-leaf-tea/fundamental-analysis-shows-that-green-leaf-tea-company-is-fairly-valued-then-green-leaf-tea-company#comment-6157 The correct answer is: D. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis. (Note: The sudden improvement in technology and induction of a beterr, successful CEO would suggest that the company's future profits or earnings would increase. Increased profit is a fundamental factor that should increase the fair value of the firm's share. But market price failed to show up this improvement in fundamental factor. So, after this sudden happening, the share of the company remains undervalues (ie. valued less than the fair value which has increased)<br><b>References : </b><br>Keep count. And let me know the price. We shall settle later. The correct answer is:
D. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.

(Note: The sudden improvement in technology and induction of a beterr, successful CEO would suggest that the company’s future profits or earnings would increase. Increased profit is a fundamental factor that should increase the fair value of the firm’s share. But market price failed to show up this improvement in fundamental factor. So, after this sudden happening, the share of the company remains undervalues (ie. valued less than the fair value which has increased)
References :
Keep count. And let me know the price. We shall settle later.

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