[QUOTE="Kestastrophe"][QUOTE="DXGreat1_HGL"] Oh OK, so some idiot professor that has probably never invested money in his life said so, that explains it...
DXGreat1_HGL
Self-owned. PhD > You
Anyways, the entire basis of your argument is that "losses are bad", so people shouldn't invest in a company that has losses. If you did know anything about business, you would know that the objective of puclicly traded companies is to create shareholder wealth (in the shareholder model anyways). The creation of shareholder wealth, regardless of the current earnings level, is the driving force behind valuation.
Furthermore, if you knew anythign about investing, you would know that the price to earnings ratio is not a reliable source for guaging the market's perception of share value. Instead, it is the price to book ratio that indicates the market's long-term perception of share value. Why is this? Because earnings can be an abberation. Thus, non-recurring losses play a very small role in valuation. GTFO
Nope Street Smarts >> Book Smarts anyday. Make up all the garbage you want, your PHD pinhead is teaching you that crap because he couldn't own a successful business in the real world. Hand me his PHD and I'll use it for toilet paper...
Self owned because Anything >> Ignorance.
It must be that new fangled empirical research. Were you born in the 1930's or are you just an advocate for misinformation?
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