When I read your post I can understand your, and E_K_S's, enthusiasm for certain technical innovations and new advances in various areas of science and technologies, that one could therefore possibly assume it will ensure that the companies at the forefront will, with a fair degree of certainty, reap substantial capital gains in the future, and one should therefore get in on the ground floor now while they are still relatively cheap.
Well, I'd like to make an observation or two from my own perspective in this ......
At the end of the day ...
(A) irrespective of these new "lines" of products or services or innovations, the companies that are starting off in them are still BUSINESSES. And like any business they will have to face the unavoidable REALITIES of "Revenues" (at the Top of the Income Statement), "CoS", "Sg&A", "Debt cost", "Tax", etc..., which WILL ALWAYS HAVE TO END UP WITH A BOTTOM LINE (at the End of the Income Statement),
(B) the more attractive and beneficial and popular and advantageously apparent these new "lines" become, the greater will be the number of other "new" companies that will enter these arenas, and as a result the COMPETITION will become fiercer and fiercer. And with that Competition will be the effects that it will have on THE PRICE OF THE PRODUCT OR SERVICE which will then undoubtedly affect the "Business items" mentioned in (A) above, and most especially the Bottom Line.
So as we have seen when we look at the pertinent areas within a Business's Financials we note that when these criteria meet, or exceed, the targets that we set, there, invariably, is a positive forward trend in that business's price performance .... the one seems to be a natural progression and offshoot from the other.
So with that in mind, it may be Prudent to monitor the ongoing "progress" of these "New Startups" in these "New Areas of Innovation and Invention", from the standpoint of how THEY PERFORM AS BUSINESSES AND HOW PROFITABLE THEY CAN BE ON A REGULAR AND REASONABLY SUSTAINABLE LEVEL .... because as I referred to previously, they are after all Businesses and are subject to all the ramifications and "slings and arrows" that any business will have to face .....
 
No Profits As Yet ....... |
