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Microcap & Penny Stocks : EUTRO INVESTMENT GROUP EUTO (LONGS) -- Ignore unavailable to you. Want to Upgrade?

To: hoffy who wrote (760)	12/30/1997 2:40:00 PM
From: timmask	Read Replies (1) \| Respond to of 1667

XCL will be one investment I will writting off this year! Back to EUTO, someone brought up a valid point earlier. If the object of Eutro is to grow into a truly prosperous company, why would they distribute the shares they obtain from their clients to their shareholders, or even more importantly, why pay a dividend to shareholders? Companies that undergo a period of hyper-normal growth almost always pay no dividends to shareholders, but rather use this money to reinvest in other supernormal growth projects. It is only when a market approaches some form of saturation and growth slows to a more normal rate that dividends are paid to shareholders, because the company no longer needs this revenue to invest in supernormal growth projects, because only projects which produce a slower, more normal growth rate exist. This is probably a stretch (someone more knowledgeable please correct me) but can we assume if the company is going to pay dividends to shareholders (whether common or not) that there is no foreseeable future for the company involving super-growth. This would mean that the company either is satisfied with current growth rates, or no such projects in the market in which Eutro operates could produce hyper-growth regardless of the captial invested in such projects. I am not really familiar with the functions that Eutro actually preforms other than bringing other companies public. The theory I proposed above applies to such sectors as tech stocks and industrials, and perhaps does not apply this financial issue. All opinions are welcome. (as well as any necessary spelling korections (sic) ) Thanks, TIm