Baalzamon said: Speaking from experience as an auditor, I can tell you now, the companies with $500 million in annual revenues do not necessarily have any better (and sometimes worse) resources than the companies with $50 million in annual revenues. Being a larger company does not imply in any way whatsoever that their resources are more plentiful. |
Being an auditor you know that a publicaly traded company must have their financials matching to the cents... and being a public traded company they can't release public pieces that make the investor evaluate the company current or potential value wrong...
If you say you are going to sell 50M devices in X years and attain YY% margin delivering ZZZ profits and don't deliver that (and that made your value as company change at the time the person bought the shares) you are legally liable... any public statement from a company is carefully looked and worded in a way that their liability is under certanty. Unless you are a cheating and endangering your company.
So if I preffer to trust MultiBillion company Sony numbers (when gave straight) and doubt exactly what MS said when they are vague (a defense when saying close to 5 when you are 4.5, but you never claimed over X with certanty) than believe VGC is spot on, even more when they don't trade shares, I think I have good reasons.
Sony lies about some consoles sold but then tell the truth about billions in loss in restruraction plans that haven't even been spent yet, and everytime new predictions on their financials arrive they correct what they have to be better protected from law suits...