Paul, you may not be the first person I’ve heard on You Tube that brought up shares outstanding, but you are the first I’ve heard putting an emphasis on it and explaining why it matters. These breakdown videos are tremendous, so much good stuff!
@@Veronica-kp6sd My greatest mistake was not listening to myself and Invested in Bitcoin.i was misleaded by my friends telling me not to do that it was of no value and just a waste of time but now bitcoin is one of the most profitable cryptocurrency now.
I agree. I prefer high growth stocks that are on their trajectory to profitability to issue shares instead of taking on debt IF the shares is currently overpriced. See PTON, PENN or DKNG. When GME got pumped I didn’t understand why management didn’t issue more shares. AMC did. Taking on debt has a lasting effect on balance sheets and income statements. Growth companies need that cash to re-invest into the future and to make it through roadblocks. Another scan I like to run is insider buying. I don’t care that much about insider selling because directors can sell for a variety of personal reasons. But insider buying is interesting for me because a director has clearly confidence in the company’s growth and long term trajectory regarding share price. Insider buying is part of my checklist. Not a must but I like to see it.
This is a great channel. Actual education. It's funny that the smallest channels have the most valuable information. Cameron Stewart also gives solid insights like you guys who I think you should review. Keep going!
I'm really trying but failling to understand how it impacts me that much. Once i'm selling my shares, it will be at market price so whteher there's more shares floating or not do i really care? I will still make my prodit if i sell at higher price that i've prurchased them right? 1 share will still worth its market selling price.... Sorry i'm really dumb. Otherwise love the good work, love the dynamic and love that white board and Paul writing on it... so satisfying :D Much love from Paris!
I've learned so much in the past 2 weeks since I joined the patreon than I learned the whole 5mo before. I feel I'm starting to understand how to actually evaluate a company instead of just looking at their stock price and deciding from there. Hope to join Moe's Bid N Ask Nation next but I'm poor, gotta wait til next payday. Think that will really pay for itself 10 fold once I join tho. Been so excited about learning how to invest. Much love EM
Good video but this just scratched the surface. EPS CFPS are key metrics that anchor to shares outstanding. The company’s ability to pay or continue paying dividends depends on cash divided by number of shares outstanding… beyond Market Cap, various valuation methodologies take shares outstanding into consideration. Maybe do a Part 2??
Another amazing exemple of company who is buying back shares is biogen. Eps grew 6x in the last 10 years with a net margin of 30%. With an roe and roic of 33 and 22% this company is a money machine ! Sleeping beast
My portfolio is doing so much better now thanks to this channel. Guys, can the three of you share your portfolio (or at least your highest value stocks) for us to see a little more of your perspective on value investing? Thank you
@@tanyamaynes6177 i trade mostly at NASDAQ and NYSE which is completely allowed to canadians. as far asTSX is concerned you can use the same concepts what is being taught at EM. I have nothing against TSX but all the good companies are listed in USA.
I think this is the most important Pillar, thats the reason i love boring Companys like J&J and 3M you dont need a fast growing Pie when youre Piece of the pie gets bigger.
Sorry for sounding dumb but when we buy and sell shares on a platform... the shares oustanding is irrelevant to us isnt it as we just recoup the reward/loss based on the percentage the stock has increased/decreased? So is this more for dividends receiptants etc ?
How do you see it when the company buys back shares for a few years, and then issue more, and buy back again? Isn't it like they are just playing the game with you? Increase then decrease and increase again to look nicer ? How would your expertise say? Thanks!
I would argue that when a company does a direct offering, diluting the stock this is not a silent killer. It's a temporary setback. It is often beneficial to the overall value of the company as it generates more revenue which can then be invested into R&D . Over time as the value increases from these self-investments by the company the dilution is absorbed more or less, assuming growth happens and the company becomes more profitable. You are dealing in absolutes, which is not necessarily the case down the road.
Make a video about the company called Uphealth, Inc. their stock ticker is UPH. Their book value of their shares is $5.20 but their stock price is trading at $2.81 a share as of 11/22/2021 at 11:14 AM.
What is your response to economists that say share buybacks are a tool used by executives to pump their stock based compensation and instead the additional cash on hand should be used as an investment for things such as expansion, R&D, hiring more talent etc.
Is there a limit on the amount of shares a company can buy back? For example if Apple does exactly what they're doing for the rest of time eventually they'll run out of shares to buy back and even before that the company would essentially own itself. Is there a certain percentage of shares that have to be available to the public?
I suppose we have to consider that Tesla is at an entirely different point in time in terms of the growth of the company than Apple. They are still in the infancy of building out the "machine that builds the machine".
This is a dumb question but how does the money from selling more shares affect their financial statements/balance sheet/cashflow? (Besides the per earnings calculations). Does it show in their cashflow etc?
Gday guys, love the channel, great strategy and the information and facts to back it up! I was hoping you could explain what a negative p/e ratio is relative to a positive p/e ratio? You're putting the rest to shame! Cheers boys
But looking at stocks that have increased shares, the individual stock price just rise. That makes this explanation confusing. You say it is worth less, but in reality I still have to pay more to buy it.
If company isssues more share. Arent they gonna issue it at the same price as of market and people are buying it than how does your 1$ becomes 0.83c. Shouldnt it stay same
Bitcoin is the future, investing in it now will be the wisest thing to do especially with the current situations like low salaries, pandemic etc, it helps us to be financially stable!!
Seth, I want to send you a box full of mangoes. We have our farm in a village and I want you to taste our mangoes and tell me how is it 😎 Where should I send it? 🧐😬
@@EverythingMoney yes reef... we already do that... most of our mangoes get wasted because they are too much.. so we just simply donate to the needy when we come to know that our business is not going that great... But Seth is my favorite and I just wanted to gift him as a token of love and respect. 😇 Do convey my message to Seth if you get a chance
@@EverythingMoney thanks for your reply...I understand that the company is an artificial person.But then, who are these people that make the decision of buying back..and to whose account does these reflect...i.e who are those that gain more from the decision of buyback.Thank You.
![PURPEECH - นี่ฉันเองคนที่... (It's me) [Official MV]](http://i.ytimg.com/vi/NuhHd0hOOg8/mqdefault.jpg)
Paul, you may not be the first person I’ve heard on You Tube that brought up shares outstanding, but you are the first I’ve heard putting an emphasis on it and explaining why it matters. These breakdown videos are tremendous, so much good stuff!
Awesome, thank you! Love -AP
These two are the perfect pair. Found the channel a week or so ago.... love it!
Welcome aboard! -AP
Our thinking really has an important impact in our lives but many people fail to understand this.
Many people fail to understand that the More you fill your through with something positive, your life will become positive.
Love your thinking ! -AP
Many people don't have that self esteem, they don't believe in themselves.They always allow friends or relative to direct their thoughts.
When you start believing in yourself, you see that you will start achieving things that's seems impossible to you.
@@Veronica-kp6sd My greatest mistake was not listening to myself and Invested in Bitcoin.i was misleaded by my friends telling me not to do that it was of no value and just a waste of time but now bitcoin is one of the most profitable cryptocurrency now.
I agree. I prefer high growth stocks that are on their trajectory to profitability to issue shares instead of taking on debt IF the shares is currently overpriced. See PTON, PENN or DKNG. When GME got pumped I didn’t understand why management didn’t issue more shares. AMC did. Taking on debt has a lasting effect on balance sheets and income statements. Growth companies need that cash to re-invest into the future and to make it through roadblocks.
Another scan I like to run is insider buying. I don’t care that much about insider selling because directors can sell for a variety of personal reasons. But insider buying is interesting for me because a director has clearly confidence in the company’s growth and long term trajectory regarding share price. Insider buying is part of my checklist. Not a must but I like to see it.
Love your thinking , thanks for the support -AP
Since I started watching EM, I now obsessively check shares outstanding whenever I research a company. Thanks Paul!
You rock! -AP
This is a great channel. Actual education. It's funny that the smallest channels have the most valuable information. Cameron Stewart also gives solid insights like you guys who I think you should review. Keep going!
Glad you think so! -AP
I'm really trying but failling to understand how it impacts me that much. Once i'm selling my shares, it will be at market price so whteher there's more shares floating or not do i really care? I will still make my prodit if i sell at higher price that i've prurchased them right? 1 share will still worth its market selling price.... Sorry i'm really dumb. Otherwise love the good work, love the dynamic and love that white board and Paul writing on it... so satisfying :D Much love from Paris!
I've learned so much in the past 2 weeks since I joined the patreon than I learned the whole 5mo before. I feel I'm starting to understand how to actually evaluate a company instead of just looking at their stock price and deciding from there. Hope to join Moe's Bid N Ask Nation next but I'm poor, gotta wait til next payday. Think that will really pay for itself 10 fold once I join tho. Been so excited about learning how to invest. Much love EM
Waiting to see you at discord -AP
You guys are great. I left not investing in hype and switched to long term investments.
I love these "Basics" videos. This channel really is a gem.
Good video but this just scratched the surface. EPS CFPS are key metrics that anchor to shares outstanding. The company’s ability to pay or continue paying dividends depends on cash divided by number of shares outstanding… beyond Market Cap, various valuation methodologies take shares outstanding into consideration. Maybe do a Part 2??
These videos explaining the pillars are very helpful
They shure are thanks for the love -AP
Paul, thanks for these mini clinics on investing. I hope you do more!
Thanks for the love ! -AP
Daily Stock Knowledge check ! :) great work guys
Appreciate it! -AP
Been watching, listening, and paying attention to all of predictions and forecasts since early Covid. He hasn't disappointed yet 👌
Another amazing exemple of company who is buying back shares is biogen. Eps grew 6x in the last 10 years with a net margin of 30%. With an roe and roic of 33 and 22% this company is a money machine ! Sleeping beast
Nice !! love -AP
I know what shares outstanding are guys... but still watched the video because of Seth's shirt. Loving that shirt mate!
Seth would say Lurv ya! -Tim
He explained this very well
Great content. Without this fella with beard we would hardly understand what Paul trying to explain us, great combination. Thanks guys
This is a underrated yet wonderful channel
My portfolio is doing so much better now thanks to this channel. Guys, can the three of you share your portfolio (or at least your highest value stocks) for us to see a little more of your perspective on value investing? Thank you
You can get access to all their portfolios via Patreon.
So how d u determine a healthy shares outstanding for a certain company?
Let’s goooo! I feel like I’m about to learn MOREEEE😁😁😁
I’m up in rural Quebec a small town called Fermont, I’m sure it’s the smallest out of all the patrons.
You will be surprised how many Canadians we have in there ! Love AP
@@EverythingMoney how relevant is the content and discord to Canadians? 🇨🇦 from Victoria, Beautiful British Columbia!
i am from a small community in northern ontario
@@tanyamaynes6177 i trade mostly at NASDAQ and NYSE which is completely allowed to canadians. as far asTSX is concerned you can use the same concepts what is being taught at EM. I have nothing against TSX but all the good companies are listed in USA.
@@kashifrit That's awesome I graduated from LakeHead and spend some time in Sioux Lookout
appreciate the explanation it was great
40k and climbing, great video guys
Yes! Thank you! -AP
Great channel! You guys and Sven Carlin are all I watch. Keep up the good work!
Understood, that was great.
Glad you got value from this!
I think this is the most important Pillar, thats the reason i love boring Companys like J&J and 3M you dont need a fast growing Pie when youre Piece of the pie gets bigger.
Right on! Love -AP
I truly appreciate you guys and really enjoy learning from this channel. Thank you for doing what you do!!
Thank you for that breakdown... amazing video.
Glad you enjoyed it! -AP
So....the capital gains that results from a share buyback is good for investors (in part) because it's more tax efficient than dividends?
love this, i learn alot from this video. thank you so much for the knowledge
What about synthetic shares going on in AMC
Will Paul do a video where he "ranks" the 8 Pillars by importance?
I know he said shares outstanding was umderrated.
Thanks for the love -AP
I love the thumbnails!! Gj to the artist
Love this channel learning more about my passion !
Sorry for sounding dumb but when we buy and sell shares on a platform... the shares oustanding is irrelevant to us isnt it as we just recoup the reward/loss based on the percentage the stock has increased/decreased? So is this more for dividends receiptants etc ?
What’s the percentage reported on the software? In a year?
How do you see it when the company buys back shares for a few years, and then issue more, and buy back again? Isn't it like they are just playing the game with you? Increase then decrease and increase again to look nicer ? How would your expertise say? Thanks!
Can you take a look at UONE?
Sells at 3-4 times FCF and look sustainable.
Great video by the way
Here's to add to your Tesla example:
For Q1 2021, revenue grew 73% YoY.
BUT, revenue PER SHARE grew only 52% YoY.
Dilution is a silent killer.
Thanks for the love and info! -AP
Another quality video guys.
Glad you enjoyed it! -AP
I would argue that when a company does a direct offering, diluting the stock this is not a silent killer. It's a temporary setback. It is often beneficial to the overall value of the company as it generates more revenue which can then be invested into R&D . Over time as the value increases from these self-investments by the company the dilution is absorbed more or less, assuming growth happens and the company becomes more profitable. You are dealing in absolutes, which is not necessarily the case down the road.
I really love these videos!!! They are enjoyable and educative at the same time:)) thanks a lot guys:)
Make a video about the company called Uphealth, Inc. their stock ticker is UPH. Their book value of their shares is $5.20 but their stock price is trading at $2.81 a share as of 11/22/2021 at 11:14 AM.
New investor here. His does DTC relate to this?
Hello. Do you think you guys could review the financials for Discovery Financials? I feel like they have so much potential. Thank you in advanced!
What is your response to economists that say share buybacks are a tool used by executives to pump their stock based compensation and instead the additional cash on hand should be used as an investment for things such as expansion, R&D, hiring more talent etc.
Is there a limit on the amount of shares a company can buy back? For example if Apple does exactly what they're doing for the rest of time eventually they'll run out of shares to buy back and even before that the company would essentially own itself. Is there a certain percentage of shares that have to be available to the public?
have a funny stock to look at in everthing money program. Jaguar Mng. Quite extreme numbers.
I suppose we have to consider that Tesla is at an entirely different point in time in terms of the growth of the company than Apple. They are still in the infancy of building out the "machine that builds the machine".
This is a dumb question but how does the money from selling more shares affect their financial statements/balance sheet/cashflow? (Besides the per earnings calculations). Does it show in their cashflow etc?
The sale of common stock appears in the cash and equity sections of the balance sheet. In the cash flow statement it goes to the financing section.
@@rhot2012 Thanks!
I'm long on this channel for sure.
8:10 Tesla in 2020 share split not issuing new
Gday guys, love the channel, great strategy and the information and facts to back it up! I was hoping you could explain what a negative p/e ratio is relative to a positive p/e ratio? You're putting the rest to shame! Cheers boys
So if company's tendency is to issue additional shares every year - in long term that's a "don't buy" in most cases, am I right?
Did you guys see the 4 billion buy back plan amd has !?!
Thanks for the comment! will look into it. -AP
Keep doing these. Very good. I love the software too. Amazing
Thanks, will do! -AP
Wait, the new shares are still purchased so the money still goes into the company even though the EPS decreases slightly.
Thanks for the comment! -AP
How can you tell when a company will stop issuing shares?
Read the 10k and find out there plan
Absolutely amazing
But what if theyre making 12 $ per share bc of the acquisition?
If a company keeps on doing that silent killer strategy then don't you think that this company could eventually get sued?
In here nice and early
Thanks! -AP
I would love it if you invested Steven from coffeezilla, the guy is hilarious and has the same views as you Paul on investing and all these fake gurus
Anytime a company plays with outstanding share count run! Just run! If the count goes higher you lose if the count goes lower your about to lose
But looking at stocks that have increased shares, the individual stock price just rise. That makes this explanation confusing. You say it is worth less, but in reality I still have to pay more to buy it.
Palantir 🤫
Thanks for the comment! -AP
If company isssues more share. Arent they gonna issue it at the same price as of market and people are buying it than how does your 1$ becomes 0.83c. Shouldnt it stay same
Hi!
Paul “Why issue more Debt when we have all these Morons paying us thru the nose ahahhahahahahhahah 🤣🤣🤣🤣🤣
Gamestop had a pretty good haul when it comes to issuing new shares the last few months 🤣
pizza pie.
Yummy ! -AP
👍🏻👍🏻
Thanks -AP
Bitcoin is the future, investing in it now will be the wisest thing to do especially with the current situations like low salaries, pandemic etc, it helps us to be financially stable!!
Thanks for the comment!
we should be careful the way we spend money, if you are not spending to get profits at the end, your gradually moving into poverty and losses
starting early is the best way of getting ahead to build wealths, investing remains a priority
The beard ..... is.... a clip on, right?
2:23 That may be the ugliest looking pizza I've ever seen.
Seth, I want to send you a box full of mangoes. We have our farm in a village and I want you to taste our mangoes and tell me how is it 😎
Where should I send it? 🧐😬
Lol please donate them to a homeless shelter or needy person for us! Much love ✌️-Reef
@@EverythingMoney yes reef... we already do that... most of our mangoes get wasted because they are too much.. so we just simply donate to the needy when we come to know that our business is not going that great...
But Seth is my favorite and I just wanted to gift him as a token of love and respect. 😇 Do convey my message to Seth if you get a chance
Who are these individuals who buy these shares back?
the company does
@@EverythingMoney thanks for your reply...I understand that the company is an artificial person.But then, who are these people that make the decision of buying back..and to whose account does these reflect...i.e who are those that gain more from the decision of buyback.Thank You.