That is the question for those holding Sabre shares…. What’s your thoughts?
5 replies (most recent on top)
With major insider buys reported on Form 4 and we're at an average in of 5.85, we're long. Offering enhanced packages... working to improve FCF... may even reduce our position (at 5.85) and hold some. May be a merger or acquisition motivating the insiders, we'll see.
It’s priced so low now I’m going to let it ride. Maybe this incompetent E-team can con some investors to buy.
From his paper:
"When stated in terms of lifetime dollar wealth creation to shareholders in aggregate,
approximately one-third of 1% of the firms that issued common stocks contained in the CRSP database account for half of the net stock market gains, and slightly more than 4% of the firms account for all of the net stock market gains. The other 96% of firms that issued stock collectively matched one-month Treasury bill returns over their lifetimes. "
Link to the paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2900447
Stock price changes are generally random, and the stock price (assuming the efficient market hypothesis) is discounted by future earnings.
Only a few percent of stocks are responsible for the total stock market return. The vast majority (on average) gets a return lower than short-term U.S. Treasury bonds.
Listen to this fragment of the interview from Prof. Hendrik Bessembinder:
https://www.youtube.com/watch?v=mZEYfyXJrGc&t=300s
Personally, I'm keeping my Sabre stock, but I don't have much of it. It is a tiny part of my equity portfolio. However, it is a gamble to own an individual stock if your portfolio is not well-diversified.
To p-o or not to p-o?