Revenue and profit sadly are not the main indicator since that can change dramatically in a few months or years. When a company has revenues and profits and invests it in staff, buildings and R&D that will be hard to sustain if revenues and profits suddenly dip. Don't think it changes dramatically -- look at PC Makers, software like Dbase, Lotus, WordPerfect, hardware/os/software like Blackberry and realize they were considered extremely profitable and valuable but smart people sold their stock and invested in their replacements as the signs were there that they had competitors that would remove their dominance.
Short term revenue and profit may be a "last hurrah" and 1-3 years later the company may be struggling.
I recommend reading books on marketing and business management like "Marketing Warfare" by Trout and Reiss, "The Tipping Point" by Malcom Gladwell, "Selling The Wheel" and "Crossing The Chasm" to get much more insight in how and why companies will be highly profitable and a few years later struggling and how the companies arise that take business away from very successful ones. Newspapers and magazines by their nature are stories of "Man Bites Dog" so they really don't cover the essentials of what makes a business and marketing strategy and product development suceed or fail over decades or a century.
I recommend reading books on marketing and business management like "Marketing Warfare" by Trout and Reiss, "The Tipping Point" by Malcom Gladwell, "Selling The Wheel" and "Crossing The Chasm" to get much more insight in how and why companies will be highly profitable and a few years later struggling and how the companies arise that take business away from very successful ones. Newspapers and magazines by their nature are stories of "Man Bites Dog" so they really don't cover the essentials of what makes a business and marketing strategy and product development suceed or fail over decades or a century.
The books I mention here have helped me predict the rise and fall of several companies with high accuracy. Before reading those books I was often way off at determining what businesses would succeed, and what businesses would seemingly out of the blue fail.
On Fri, Jan 15, 2016 at 9:17 AM, Pat Taylor pat412@mac.com [iPad] <iPad@yahoogroups.com> wrote:
There are countless articles on the topic in both the tech and business press, but none of them have made much sense to me!
PatOn Jan 15, 2016, at 1:39 AM, Alice Saunders lwr32@mac.com [iPad] <iPad@yahoogroups.com> wrote:Ok, if any of you are like me, you don't understand the stock market. I know I don't. I always thought that if a company does well and makes money, their stock goes up. Apparently that isn't so. I listen to the podcasts, DTNS (Daily Tech News Show), BTNS (British Tech News Show), Mac OS Ken and iMore the most. DRNS, BTNS and Mac OS Ken are daily. iMore is about once a week for Mac news. All were reporting Apple made a ton of money (as always) but that their stock went down. How does that work? Shouldn't Apple stock go up if they make a ton of money?
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Posted by: Myrddin Wyllt <myrddinwyllt1964@gmail.com>
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