I would imagine the valuation would directly effect future sales.
A Companies dramatic collapse in stock price is terrible publicity.
It could have a ripple effect on many things.
In your pizza shop example lets say the "word on the street" ie the market, decides your shop is now worth 10% of its previous value. In other words, people expect you to go bankrupt
What if your food suppliers now want cash up front? Or your building owner does not renew your lease for fear of being stuck with 3 months unpaid rent when you go belly up?
As a potential customer i could choose another shop for fear that you are now cutting corners to save money.
When these that previously dealt with you fairly because of your upstanding reputation start to become defensive, it could ruin you in a matter of months.
SGH Price at posting:
83.0¢ Sentiment: Hold Disclosure: Not Held
