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To: Cogito Ergo Sum who wrote (44242)	1/4/2004 12:22:46 AM
From: TobagoJack	Read Replies (2) \| Respond to of 74559

KastelCo, <<quick version of why you don't like manufacturers>> It seems to me that if a company explicitly promises never to pay a material dividend, and may not be able buy back shares, then the company is worth-less. I believe manufacturing companies come closest to such a worth-less company. If I were running a manufacturing company, my time, and the resources at my command, would be devoted to: - Strategic planning against competitors - Maneuvering my company in implementing the strategic plan - Monitoring the operation of my company in regard to o Research & development o Product development o Raw material and input sourcing o Capital equipment upgrade o Marketing & sales o Distribution and after-sales service - Interacting with regulators - Grow with the economy and against my competitors - … and how to better allocate money - … with paying back investors/bankers an after-thought, just enough to keep my job If I were running a service company, I would need to: - Strategic planning against competitors - Maneuvering my company in implementing the strategic plan - Monitoring the operation of my company in regard to o Research & development (a little bit) o Product development (a little bit) o Raw material and input sourcing (simpler than manufacturers) o Capital equipment upgrade (ditto) o Marketing & sales o Distribution and after-sales service - Interacting with regulators - Grow with the economy and against my competitors - … and how to better allocate money - … with paying back investors/bankers an after-thought, just enough to keep my job - … but once I have some scale and a customer roster, unless I screw up, my company should do OK, scaling up, and pay some sort of a respectable dividend If I were running a resource or real estate company, my company needs to, at the simplest level: - Analyze acquisition and/or engage in exploration - Dig or grow or build or buy - Pay my investors/bankers, and everybody knows, more rather than less, about my financial flows since it is a simple business, and so I better pay out quite a bit unless I am buying a lot of new resource so that I can pay out a lot later - Interact with regulators, but most of my fellow resource companies will likely have the same exact interest as I - Grow with the economy, and not to the same extent as the manufacturing/service businesses to grow against my competitors