Why did ghhs stock price also jump today

Assignment Help Financial Accounting
Reference no: EM13855544

Dale Pacioretty: Best Sell, a consumer electronics corporation, just reported its second-quarter earnings that topped analysts' expectations, and I saw Best Sell shares rose sharply after the earnings report came out. It is like crazy! Look at the stock price of GHH, another retailer of consumer electronics. It was also going up significantly. Why did GHH's stock price also jump today? Can any of you explain this to me in detail?

Carey Subban: Hold on Dale. I closely follow Best Sell, too. A few quarters back, Best Sell also posted very impressive earnings performance, but its stock price barely moved by then. Why? I skipped the class. My bad, my bad! But, you guys have to first help me out on this.

P.K. Weise: Yeah, my recollection is that its stock price went up significantly afterwards. Is this the "post- announcement drift" we learned in class? I am so confused.

Max Gallagher: I heard the Accounting Standards Board (AcSB) takes a position that accrual anomalies could be reduced if the accrual component of earnings is more persistent. This makes a lot of sense to me, but I don't know how to improve the persistency of the accrual component of earnings. Do you guys have any inputs?

Brendan Price: Look, in the earnings announcement, Best Sell also reported that its same store sales increased by 1.5 per cent. In my marketing class, I learned that this measure gauges a retailer's health as it excludes sales from stores that recently opened or closed during the year. Maybe investors should focus on this measure, instead of earnings, in valuation. Perhaps Best Sell should report this figure on the income statement. Eh?

Verified Expert

Reference no: EM13855544

Received two notes from customers for sales

Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2016. The notes included: Note A: Dated 5/31/2016, principal of $120,000 and int

Company projected a negative net present value

Do you feel if a company projected a negative net present value they should always reject the proposal? What would be your argument to management for why you would always reje

What annual interest rate did you pay

To borrow? money, you pawn your guitar. Based on the value of the? guitar, the pawnbroker loans you $1080. One month? later, you get the guitar back by paying the pawnbroker $

Assigning cost of capacity

Beth's Supplies manufactures building tiles in one plant, which has a practical capacity of 25,000 tiles. The variable cost of the tile is $9.00 per unit, and the fixed costs

What is expected return for a portfolio with an investment

Weighing the probabilities with returns or risk, help to indicate which asset will be creating the most influence in a mix of assets or a portfolio. Consider the following inf

How does the balance in allowance for bad debts

How does the balance in Allowance for Bad Debts before adjustment affect the amount of the year-end adjustment under the percentage of sales method? Under the percentage of

Determine the present value of the lease payments

Werner Chemical, Inc., leased a protein analyzer on September 30, 2016. The five-year lease agreement calls for Werner to make quarterly lease payments of $407,863, payable ea

Calculate the amount of cash dividends paid

Calculate the amount of cash dividends paid during 2012. Calculate the depreciation expense incurred during 2012. Prepare a statement of retained earnings for the year ended D


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd