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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: capt rocky 1 who wrote (8741)	10/30/2000 5:11:01 AM
From: Allegoria	Respond to of 10309

rocky: growth without profit to the bottom line is not growth but dilution. that simple Sorry, I don't think so. New companies, small companies and companies experiencing explosive expansion often undergo rapid growth that does not translate to a profit to the bottom line. I've invested in some and in some cases the market has endorsed them very richly. R&D, G&A, plant expansion, new debt, dilution (warrants, issuing additional shares, etc.) and a whole host of reasons can prevent the bottom line from swelling. Usually all of these instruments are necessary to grow a company, and yet the company may be losing more money than the previous quarter. It is usually the case! I think that dilution must be viewed as a two edged sword. It cannot be viewed as always detrimental to shareholders anymore than it can be viewed as completely beneficial to shareholders. Growth is too complicated for this type of binary reasoning. Share dilution is necessary to a growing company. At the expense of profits? Sometimes certainly. Putting growth ahead of profits is actually the norm in many evolving young companies.. And it has nothing to do with "dotcoms" either. As with Prognosticator, I guess we agree to disagree. Again politely. I feel like I am on another planet on this thread…in a friendly way: do you guys really believe what you've written? Good luck, Eric