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MoneyForNuthin

09/26/19 12:39 PM

#8844 RE: zxc #8843

Agreed. For all small companies that want to get anywhere - it's all about growth. You keep reinvesting your gross profit, and turn it into much larger values of net profit through year over year growth, higher gross profit margin, and in the long run higher net profit. This is what it's all about. The stock price is ALL ABOUT future profit. So anytime you hear folks leaning on management to "show profit" - just remember, that's ALL it is: SHOW.

RETURN ON CAPITAL EMPLOYED is a big part of RETURN ON INVESTMENT. Any significant profits sitting in a cash account... FIRE THE MANAGEMENT. They should be putting that money to use or returning it to investors as a dividend. AND - you only return it as a dividend when you can no longer effectively use that money to create higher value for your investors.

So - small company (less than $100M, imo)... show very small or no NET profit, and focus primarily on showing REVENUE growth. However, of course, we know the business model has to show the POTENTIAL for substantial NET profit. Which can be seen from the financials that Alpine 4 Tech definitely has.