Well put probing.I read recently on another forum someone saying...

Well put probing.

I read recently on another forum someone saying that a companies share price should equate the value of all future dividends discounted to net present value ( and therefore the stock being discussed was worthless).This is incorrect, mostly because of the capital growth element. As a shareholder we are, in theory, part owners of that whole companies worth, so if the company grows, so do the share's value, even if paying no dividend.

If the theory was true, then Newscorp would be around $3.00 as they have never paid much dividend, preferring instead to use the money to invest in capital growth...ie they are of the opinion the money can grow more quickly that way.

Anyway..we are diverging off topic ..