Can someone confirm my understanding of Halo Effect?
I think stock is a good buy because sales are up, but I disregard the fact that leverage is high and the Company may not be able to service its debt (and therefore it may be a terrible buy).
1 Like
That’s a good example: lean on some good data, ignore other bad data.
1 Like
Yeah halo effect is common with growth stocks that lead them to get higher valuations.
1 Like
Thanks!
You’re welcome.