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value trap business

This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.

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November 11, 2016 at 5:49 am #348413
Vipin
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- Topics: 151
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When a parent company holds the value trap business, there is a high possibility of destruction of value.
How does it destroy the value?
Thanks for the support.
November 11, 2016 at 10:22 am #348455
Ken Garrett
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- Topics: 10
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Yes, value can be destroyed because the parent has been lured into acquiring a subsidiary it cannot provide help to. The danger is that is spends money desperately trying to improve a company that is beyond its capabilities to help.
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