Bill Brooks Posted May 31, 2020 Share Posted May 31, 2020 For some time market analysts have been concerned that SS has run out of options for driving future profits. Whats next? Buy a rival? Raise prices? Sell software, music, or RM? Nothing seems to be available. This negative view of SS future prospects, could result in the value of investors SS shares being worth a lot less. SS executives are big investors in SS. So if the value of the SS shares drop, then SS executives will see their net worth plummet. The cut in photographers commission will drive profits next year, without a lot of collateral damage to the overall SS collection. The collection will still look the same, clients will not care. So this lowering of photographer's commission only confirms stock market analysts negative view of SS prospects. There is not much else SS can do to drive profits, except lower the photographer's commission. It would seem that a downward spiral is starting. Not because of photographer's ire, but because SS is a mature business and has run out of expansion options. The future SS prospects do not justify the higher price of the shares today. I will be looking to see if, while preserving the price of shares in the short term through the commission cut, SS executives start to sell some of their overpriced shares. This has nothing to do with SS photographers being happy, angry, or stupid. It is about the value of the SS shares. Link to comment Share on other sites More sharing options...
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