I think it's simple what's going on: many of the co's on a look back basis are absolute train wrecks. Share issuance is through the roof, losses are material and in many cases consistent or at least lumpy - to me, most of them look like a text book example of what should be avoided under normal circumstances, especially with half the wor…
I think it's simple what's going on: many of the co's on a look back basis are absolute train wrecks. Share issuance is through the roof, losses are material and in many cases consistent or at least lumpy - to me, most of them look like a text book example of what should be avoided under normal circumstances, especially with half the worlds governments painting them as Satan himself.
Now, the difference is that circumstances are certainly not normal and many of these co's will earn substantial amounts of money, certainly in the short term and likely in the medium term (perhaps even longer term) - but what does management do - do they s**t the bed like many have done consistently for the last decade or have they suddenly seen the light? - I'm sure some will be the latter but it's hard to argue that many will be the former.
Can they hold it together for long enough that investors net a substantial return?
Again - I bet some can - maybe many can - but it's still a ballsy proposition to throw any material amount of capital at these guys - at least that's the case for a generalist like myself.
I think it's simple what's going on: many of the co's on a look back basis are absolute train wrecks. Share issuance is through the roof, losses are material and in many cases consistent or at least lumpy - to me, most of them look like a text book example of what should be avoided under normal circumstances, especially with half the worlds governments painting them as Satan himself.
Now, the difference is that circumstances are certainly not normal and many of these co's will earn substantial amounts of money, certainly in the short term and likely in the medium term (perhaps even longer term) - but what does management do - do they s**t the bed like many have done consistently for the last decade or have they suddenly seen the light? - I'm sure some will be the latter but it's hard to argue that many will be the former.
Can they hold it together for long enough that investors net a substantial return?
Again - I bet some can - maybe many can - but it's still a ballsy proposition to throw any material amount of capital at these guys - at least that's the case for a generalist like myself.