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If the stock became undervalued and management proposed a leveraged buy-out, who would protect shareholders' interests?
China's currency became undervalued primarily because of questionable U.S. macroeconomic policies and inadequate oversight of the U.S. financial system that contributed to an explosion of liquidity and a debt-financed consumption boom fed, in part, by inexpensive imports from China.
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This is one reason rookie running backs tend to become undervalued.
But at some point, some analysts believe, the market flip-flops and the group becomes undervalued enough to become a good buy.
[C7. ] Newspapershares rose after a report suggesting a possible sale of Dow Jones & Company tapped into growing investor sentiment that newspaper stocks may have become undervalued.
Increase Shareholder Value: Often, a company will use a Buyback to support and in most cases increase the price of its shares when it believes they have become undervalued.
"If we are to reach this goal successfully," she said, "we need to better understand how genuine equality will change our businesses, families and communities and to make sure that the work traditionally done by women does not become undervalued or abandoned".
Incentives may become undervalued or inadequate as a result of significant improvement to the socio-economic conditions of participants.
I learned long ago at the University of Chicago where I got my MBA that investors tend to want to invest when markets become over-valued and sell when they become undervalued.
"The recent market sell-off is a correction, driven by investors who think "this is one heck of a long recovery". Investors have taken an overly pessimistic view of a coming slowdown, so I expect the S&P to close this year higher than current levels as stocks have now become undervalued," asserts Johnson.
After previous bubbles share prices have always become significantly undervalued before recovering.
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