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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area

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To: Patentlawmeister who wrote (4009)9/17/2003 6:34:03 PM
From: Crossy  Read Replies (3) of 37387
 
Cuda,
so much about the beauty of "concept companies". I shy away from such story stocks. To me a portfolio candidate company should be able to at least SURVIVE on it's own without constantly issuing new shares. My point is - nobody forces you or me to buy ZIXI. Others are willing to pay $7 for these "empty promises" (IMHO) ? Fine. Not for me.. There have always been such pockets of the market. Biotech for example is mostly overally "R&D type" without revenues. What are you buying then ? A portion of FUTURE EXPECTED CASHFLOW. This is of course an uncertain cash flow stream - it'S said to be "stochastic" in nature.. but it still has a price.. and the current "objective value" (market derived) is what others are willing to pay for it..

now if the story of the company materializes the cashflow will materialize. however this raises the problem of "risk". Concept companies are even more risky. The risk of default is way up here. As the risk of uncertainty of the gameplan. That's why I like to invest elsewhere - where I do not depend on the rabbit out of the hat - act by their bosses (does the casfhlow show up or not ?)

rgrds
CROSSY
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