Steve:
Sometimes I think you just try to be difficult. Either that, or you lack the sufficient intellectual ability to understand the most basic concepts of capitalism. I have my own opinion, but I'll let the thread decide.
<<And actually, as a shareholder, I don't want to take out any cash flow. I'll just settle for $200 per share, thank you. But I suppose it's illegal for a stock to go to $200 as long as they're in debt.>>
Do you understand the reason why people invest in stocks? Cash flow is everything. It doesn't necessarily have to be distributed, but it has to BE AVAILABLE FOR DISTRIBUTION.
I hate to be so simplistic, but I see we're going to go round and round on this unless I spell it out for you.
WHO WOULD EVER BUY A BOND IF THEY DIDN'T EXPECT TO GET THEIR MONEY BACK!
Or if this makes it any easier for you:
WHO WOULD EVER LEND MONEY IF THEY DIDN'T EXPECT TO GET THEIR MONEY BACK!
At their very core, stocks are financial instruments just like bonds. Investors are lending their capital, with the expectations of earnings rather than a fixed promise of capital. Why do you think investors buy stocks? For the cash flow.
If you don't care about the cash flow, I have plenty of investments I'd like to sell you. You should see the projections. Of course, it really won't matter to you, since you've just told me I never have to pay you back.
People can rely on the greater fool theory for just so long. But eventually....
Regards,
JC |
