I would be more likely to buy shares of companies who are hiring.

[gulliver]

A company that is hiring is probably a stronger company than any competitor that might be laying off. That seems fairly obvious. If you want your company to attract investors and increase shareholder value, you don't want your company to look like it is circling the drain. If I were an investor, I would be very concerned about layoffs as a sign that a company is not healthy.

I think a lot of these executives who are sitting on loads of cash are doing their shareholders a major disservice. The companies look less valuable, the executives less competitive and visionary. I see shareholder value and future profits being hurt by executive timidity when I see layoffs or money sitting on the sidelines.

[RKP5637]

1. From my experience generally layoffs result in a higher stock price as

investors see that as belt tightening. It's crazy. I've worked in companies wherein the more layoffs the higher the stock price went. Crazy, isn't it ...

Then again, I worked in another company that put pages of bogus help wanted ads in the papers. They were trying to boost the stock price. They figured that made it look like they were expanding and doing quite well.

[no_hypocrisy]

3. Yet the Market tanks when mass layoffs or the monthly unemployment numbers are announced.

Go figure that contradiction . . . .

[RKP5637]

4. It is, isn't it. I took a couple of stock classes once, the instructor was an

old time wall street trader/broker and had also worked on the floor in the NY stock exchange. As he said the first day, the market is irrational and there is no logic to any of it. If one thinks there is, they will fail as a successful trader.

[FarCenter]

2. If the profit per employe is rising and they are hiring, then good

But if the profit per employee is decreasing, then bad.