LogFAQs > #878290014

LurkerFAQs, Active DB, Database 1 ( 03.09.2017-09.16.2017 ), DB2, DB3, DB4, DB5, DB6, DB7, DB8, DB9, DB10, DB11, DB12, Clear
Topic List
Page List: 1
Topic"Labor is being paid first again. Shareholders get leftovers"
Balrog0
05/01/17 8:30:44 PM
#29:


SK8T3R215 posted...
I mean it affects short term and long term valuation as now their upcoming earnings will be lower and forecasting this over the longer term they will have to factor in larger labor costs so the return on their shares will be lower, thus the price falling.


right

but the bigger issue analysts have is that it opens the door on unions being able to perpetually raise the price of labor, which increases the uncertainty and the risk profile of the investment

which I'm saying is what they're more upset about than the near-term wage increase right now, even projecting it into the future -- renegotations like this make all of their projections less certain

I'm sure both matter.
---
He would make his mark, if not on this tree, then on that wall; if not with teeth and claws, then with penknife and razor.
... Copied to Clipboard!
Topic List
Page List: 1