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Re: Joe99999! post# 50209

Wednesday, 02/14/2024 4:20:00 AM

Wednesday, February 14, 2024 4:20:00 AM

Post# of 52749
Joe I think it is a great and informative video. But there is one very serious weakness in the reasoning. My point is that in the stock market revenues are worthless in themselves. The value is in current or future profits generated by the revenues. It is fine that the revenues the aquistion will generate will lead to about 100% growth in revenues. The crucial point is, however, the net profit margin resulting from the current revenues and the profit margin that the acquisition can be expected to generate. Some companies never generate a profit and shareholders have to pay the losses as the companies sell shares to finance their losses. If the acquisition is loss-making and can be expected to continue to make losses it could have negative value for IQST. Thus the video should have expressed some opinion on the current and the future profit margin of the acqusition to have much value, since that is the all-important question.

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