Introduction
For many years, scholars have been working ceaselessly to explain the transient activities of the stock exchange market. However, the theories and mathematics of expounding the outcomes of the market have continued to be a complex field of study. The stock exchange market is usually involved with a process which is modeled by the pure force of the market (Saputo Inc., 2011). This is actually one of the most remarkable aspects of the stock market.
The continuous models which are taken by the time grids and prices in the stocks exchange market heavily rely on the intrinsic operational procedures of the business. Hence, trading on the stock exchange will always remain a tough marketing practice for participating listed companies.
One of the executives at Saputo Inc. noted that even though the results in the business are heavily dependent on distribution and current prices, generalizations are inevitable (Saputo Inc., 2010). There are many strategies laid down by different businesses to survive in the stock market. These are basically all the efforts that are put into the company in a bid to make it more competitive. In other terms, it is true to note that the solution to negative profitability is not necessary a subsequent period of positive profitability.
The investment by Saputo in the stock market has enhanced the operations of the company and has been seen as one of the strategies for becoming more competitive. However, the latter may not be the case since it is clear that the company has achieved the desired synergy in the stock market by retaining its market value.
Stock market activity
There are many aspects that are identifiable with the activities of Saputo Company in the stock market. The most remarkable activity is the pricing mechanisms that have been put in place. This has been the major strength of the company. Studies reveal that the successful pricing stage of stocks is crucial in the stock market. The company has been able to hit the mark of profitability by targeting the goal of using appropriate pricing.
Since May 2002, the company experienced a constantly changing financial result in the stock market. Saputo has had a turbulent performance in the market. From the given charts, It is evident that the returns kept on varying in relation to the market prices at various times of the 2012 fiscal year. The most profitable season ever recorded is the time towards the conclusion of the year. At this time, the company enjoyed relatively high returns from its stock market investments.
A comprehensive study of the stock market involvements of Saputo displays some profound findings. For instance, the company has operated in a way that allowed market selling forces to affect its activities. This is shown by the dividend share rates in the last trading period. This was a period that had large marginal returns. These returns were both negative and positive. At the first quarter of the year, the returns were relatively lower (Stockhouse, 2012). This can probably be explained by the existence of unfavorable conditions which led to the reduction of trading activities.
Their option-pricing procedure has a foundation on nonlinear stock exchange densities which give a dimensional exponential result. They have driven their price models from the basics of purchasing and selling. The company has applied a similar mode in the distribution of prices. Their log returns are fixed with a time grid. Their technique uses a stock price evolution that relates with their targets. Continuous changes have also been adopted to nurture the price options of the trading time grid.
Their prices at different times of the year assume values which are influenced by underlying stock prices and intrinsic factors (Saputo Inc, 2012). In order to conclude the stock market business, the company focuses on the incomplete market criterion to choose the price model for the next season. Besides, in order to minimize exposure to other competing firms, Saputo managers pick and personalize their previous price models (Saputo Inc., 2012). The chief executive officer has noted that one of the major objectives of the company is to continue leading the industry.
Dynamics of the stock price
Over the years, the prices of the stock have been changing according to market conditions. In general, the prices have been modeled by the Brownian geometric motion. This has been expected since the current market has been rendered highly competitive. Business people believe that this effect of the prices in the stock market is normal although it appears abnormal to poorly performing businesses. The trading in the market was quite reliable for Saputo.
Brownian motion does not take place continuously in the case of Saputo as shown by the pricing charts of the company (Saputo Inc., 2012). It possesses both marginal distribution of returns and a normal record of log-returns depending on the specific pricing. By analyzing the characteristics of the value dealt with in the stock market, it is clear that the company has a history of using market implications to obtain pricing options.
Saputo Inc. uses nonlinear diffusion of scalar processes of stock exchange in order to attain market goals. The company uses probability density to predict the outcomes for a given financial year. The motion of shares in the stock market is a very important tool in the setting of reliable business limits. The result of a constant changing order of sales in the market is a highly valued option at Saputo. The management has chosen market drifting technique which resolves all finite sale outcomes.
In a given business period, it is evident that the stock exchange graphs of Saputo follow the direction of flow in the market. Recession and economic breakdowns affected the revenue of the company. A continuous frame work gave enough support to the pricing criterion. The results obtained in every given trading season were able to withstand the stocking price processes (Predicio, 2012). This is therefore an arbitrary source of strength for the company. Moreover, the dynamics of the stock exchange market have greatly affected the decision made in the overall improvement of the company.
Risks in the environment
In the fiscal 2011 year, the company made further investments in its communication software. These improved the inventory movements. The latter step also made the company to gain the ability to forecast more effectively. This was aimed at providing a buffer against the risk of inconsistency in the stock exchange market.
The greatest risk that is known to disorient businesses at Saputo Inc. is the irregularities which are associated with crime. Cases of sophisticated acts of crime in the stock market pose a huge threat to the well being of companies. Such white collar crimes are known to incapacitate the smooth operations of a company.
Conclusion
It is evident that Saputo is no longer a small-sized and locally recognized company. Due to its exemplary performance, the company has gained international recognition. The numerous awards which the company has managed to earn are very authentic. In addition, the performance of this Canadian company will continue to give it a more appealing public image in the stock market since it has recorded a good performance so far. In comparison with other major Canadian companies, it is clear that this company has managed to create a stable business environment.
References
Predicio (2012). Saputo Inc (TSX:SAP.TSX) – SAP.TSX Stock Quote. Web.
Saputo, Inc. (2011). Strength through unity, 2011 Annual report. Web.
Saputo, Inc. (2012). Saputo Inc.Report. Web.
Saputo, Inc. (2010). Saputo IncTSX/Alpha:SAP. Web.
Stockhouse. (2012). S&P CAPITAL IQ Saputo Inc. (TSX:SAP) -Share pricing. Web.