Yes, Mike, I am well aware that rapid growth can result in negative cashflow, and I understand goodwill.
As I have pointed out, the two stocks are highly correlated.
tscn.com
So there is little reason to favor one over the other.
Since I wanted to buy only one stock, I needed a criterion. The choice is not critical, for the reason I mentioned above, but I needed to choose just the same. I selected my criterion, and that was balance sheet and cash flow.
If you prefer to make your criterion growth, then you will choose the other stock. It is obvious that growth can result in a less attractive balance sheet and cash flow.
Everybody has to make their own choice, in how they weigh one against the other. How much emphasis they put on growth.
I'm not going to stoop to using invective adjectives, like "improper", to describe an analysis simply because it approaches the choice from a different personal objective. |
