Some advice please

[Bodacious]

If a company annouces further job cuts should you sell your shares in the company or hold onto them???

 

[JonnyT]

Hold Corus do you?

You have to make up your own mind. Often job cuts result in an improvement of the share price which may or may not be short term.

Sorry I cannot help any more as it is illegal in the UK to give Investment Advice without being FSA registered.

JonnyT

 

[Bodacious]

I am taking part in the compititon so I am not betting with my real money so to speak. Still trying to get the hang of the markets.

Yep it is corus, the price ha been goin gup but I was wondering if the news of job cuts would have a negative effect so to speak.

 

[Trader333]

Historically speaking, announcements in the cut of jobs normally makes the share price rise because it is seen as taking cost out of a business which in turn means better profits and so better dividends to shareholders. But, of course, each case needs to be judged on its own merits.


Paul

 

[Bodacious]

I always seem to get things backwards, thank guys

 

[FTSE Beater]

Hi Bodacious

It depends what caused the job cuts. If it is for money saving measures, then this is good news for shareholders and hence the price rises.

However, if the job cuts are because the company is scaling down, then this is a sign the company is failing, and the share falls - in theory anyway

HTH 🙂

 

[Busted]

well it appears they have fallen so I did sell in the end but kept in profit :🙂: