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Technology Stocks : Broadwing Inc.

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To: Jeff Jordan who wrote (276)2/2/2005 11:30:52 AM
From: The Ox  Read Replies (2) of 4245
 
Revenue first, profits will follow.

Wrong, flat out wrong.

If a company's gross profit does not exceed the cost of running the company, then the company will NEVER be profitable. No matter how much cash flow you have coming in, you have MORE going out. That has been and continues to be the problem at BWNG/CORV. Many companies have crashed and burned because of these issues and CORV/BWNG sure looks like they are going down the same dead end. Maybe they can improve profitability, maybe not. To point at rising sales as the justification to invest here is dumb. If you believe their cost structure will somehow (miraculously) improve someday, that's a reason to consider investment but not simply because revenues are increasing.
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