Originally Posted by
mistaTea
So if market sentiment = risk assessment…
Shareholders currently buying around $2/share are taking less risk than a month ago when investors were buying at $1.50/share (adjusting for consolidation) because they signed one more contract out of hundreds?
I should also point out that after the HBO deal was signed the SP didn’t actually move very much. A little bump and then it fell again.
The SP only started to increase once Osmium declared their interest (and seem to have kept buying).
So I am dubious that the resent SP increase is anything to do with Mr Market’s sudden reassessment of Sky’s underlying business prospects at all.
Unless, of course, it was just that the market was overly pessimistic before and this is a mere correction of a previous error.
Either way, it is not a resounding argument for equating risk with movements in SP (volatility).