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mikeymac

10/29/15 11:47 AM

#17565 RE: Dickmo #17563

My concern of the obvious pps is possible company dilution. The concern there is trying to put the finger on just what the problem may be, a misstep of strategy on service or product, or company just trying to get an infusion of money.
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stocksnseeds

10/29/15 12:11 PM

#17567 RE: Dickmo #17563

Dickmo, you are cherry-picking facts here to score points. Many of your sticking points concern what often occurs in an acquisition. Most investors recognize this.

If the company is hemorrhaging assets, what is the reason? Decreasing customer satisfaction/loyalty, poor revenue growth, a burdensome debt structure, etc?...these are structural problems with the business model that are hard to reconcile for investors.

If, on the other hand, the cash flow turns negative, is it because of a growing company that is hiring top personnel in the industry to oversee a large acquisition and ultimately better position the company for future success in a rapidly evolving industry?

it's surely important to understand your cash flow, income statement, and balance sheet. It's also constructive to understand the "why" of it all, not just the "what."

If the structural problems occurred in conjunction with the cash flow issues, I'd probably be exiting my position as the risk would be too great for me. But, this is not what the collective evidence currently says.



Cheers