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As discussed in the lecture, a good company does not necessarily make a good investment. But does a bad company (defined as one that has
As discussed in the lecture, a good company does not necessarily make a good investment. But does a "bad" company (defined as one that has fallen in price) make a good investment? Seven West Media's share price as at 8 April 2024 was 19 cents, very much lower than its high of $14.31 in April 2007. What are the risks of the company trading even lower than 19 cents and what is the likelihood that it will, say, double its share price in the next year? Use whatever information you can get from whatever source (including ChatGPT or similar) to answer the question. You may find the framework for analysis of company value and the five forces framework copied overleaf helpful in identifying Seven West Media's strengths and weaknesses. The purpose of this exercise is to get you to appreciate there is a structured way to think about value
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