When ever I look at a Stock to invest in I look at what the possibilities are for the bottom line.
Then I look how the company is planning to get there.
If I approve, then I invest.
Then I keep two LISTS. The first list has a heading of ADMINISTRATION. The second list has a heading of OPERATIONS.
R&D does not play into this.
If it isn't Operations, (working toward the Bottom Line) then its Administrative.
What affects does the OPERATIONS list have on the company?
It affects their bottom line PERIOD.
How they are planning to get there affects their Botton Line..
What have they done so-far affects their Botton Line.
Business Model affects their Botton Line.
Plan of Execution of the Business Model affects their Botton Line.
BOTTOM LINE IS WHAT COUNTS......
What affects does the OPERATIONS list have on the Shareholders?
It builds investor confidence, if all is going great, the share price will take care of it self. (let it ride)[/b}
It weakens investor confidence, if all is not going great, the share price will take care of it self. (time to bail)[/b}
What affects does the ADMINISTRATION list have on the company?
Very little affect to the Bottom Line
If the Bottom Line is doing GREAT, then
It builds investor confidence, if all is going great, the share price is artificially inflated. (investors brag)[/b}
It weakens investor confidence, if all is not going great, the share price is artificially deflated. (investors complain)[/b}
If the Bottom Line is not doing GREAT, then
It builds investor confidence, if all is going great, the share price is artificially inflated. (investors brag)[/b}
It weakens investor confidence, if all is not going great, the share price is artificially deflated. (investors complain)[/b}
Now, lets look at STRU, OPERATIONS is doing GREAT! Their Bottom Line is Growing. HOW BIG? Well, we need to look at the ADMINISTRATIVE side to see this. Uh-ho, STRU's adminstrative is not top notch. So we will have to wait to know the bottom line.
Look above - OPERATIONS doing GREAT, share price will take care of itself - eventually.
Admin not doing so great, share price is artificially deflated....
Eventually, admin will catch-up with the operations and the share price will catch-up to its true value.
Why is admin behind? This is My Personal Humble Opinion (MPHO) STRU has been concentratiing on the OPERATIONS and not so much on the admin stuff. Hence - so many missed deadlines and admin foul-ups.
Kinda like a computer programmer who writes a great program, works great, looks great, but no many using it. OOPS, forgot the documentation, detailing all the fine features that have been programmed into it. EVENTUALLY the documentation will be done and the user base will grow.
Well, like wise with STRU, once they are caught up with the ADMIN, the shareholder base will grow and the price will too.
And NOW for an observation note. The majority of the posts I read (mostly over at the RB) deals with the ADMIN aspect of the business. Stands to reason, since this is STRU's weak point.
But, you won't find any bad stuff about their operations. This is good, this is what counts.
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
