Forum Home | Log in | Signup | My Page | Rules | FAQ | Boards | Members | Search
« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next

Re: Profit versus Sales Maximising Strategies

By: tkc in ALEA | Recommend this post (0)
Wed, 23 Nov 11 9:55 PM | 58 view(s)
Boardmark this board | The Trust Matrix 		Msg. 06326 of 54959
(This msg. is a reply to 06323 by Cactus Flower)
Jump:
Jump to board:
Jump to msg. #

Reinvesting to advance corporate growth has proven very successful over the ages. Plowing cash into losing ventures, cronyism, nepotism and "guaranteed bonuses" isn't in shareholders' interest. Repeating the need to recapitalize, diluting shareholder value while continuing such practices suggests a disregard for shareholders. Continued use of the unsafe harbor to mislead investors adds confirmation. Thus a skeptic might wonder if reinvesting for growth might ever result in increased shareholder value. Will a horse change it's color? I agree with reinvesting for growth, but while doing that say things, do things that let investors know that their interests are paramount. A couple of small things such as "pay for performance"; invest in some shares - or if you need to sell,establish a plan; meet the timelines you set; establish a shareholder's seat on the BoD, or abolish nepotism. Throw a dog a bone.


 - - - - -
View Replies (1) »



» You can also:
- - - - -
The above is a reply to the following message:
Profit versus Sales Maximising Strategies
By: Cactus Flower in ALEA
Wed, 23 Nov 11 8:57 PM 		Msg. 06323 of 54959

Sounds like a bunch of people haven't heard of the latter as a perfectly legitimate strategy for an early stage business.

The things to worry about in a sales maximising strategy are (i) the rate of growth of sales and (ii) cash flows (versus the cash balance).

Wave's doing fine (though not spectacularly) on both measures, although it needs to prime the cash pump with some new major orders after the Q3 decline in the cash balance.

Funny that some people cannot wrap their minds around this concept.


« ALEA Home | Email msg. | Reply to msg. | Post new | Board info. Previous | Home | Next