<<<However, there are plenty of these types of companies around>>>
I'd be interested in seeing a list of some of them. Just about everything I've looked at trading anywhere close to cash per share has very high cash burn, with no end in sight, and negative growth to the tune of 30%. Or if revenue growth is positive, expenses go up at a higher rate than sales.
There was a PR this morning which mainly summarizes information in the CC and outlines the steps to free cash flow.
biz.yahoo.com
I really am interested in looking at anything with a strong balance sheet and some kind of coherent, achievable road map to profitability. IMO, somewhere along the line, long term value has to consist of a reason why investors would pay a higher price 2 years from now than they would today. For example; I love the balance sheet on GEMS, but am unable to identify any fundamental reason why their prospects are likely to change in the foreseeable future. In other words, I'd rather speculate on a company's ability to achieve their business plan, than invest in a company that doesn't have a business plan to start with, or the business plan is a long shot bet on a cure for the common cold. |
