Lafiel said:
A "smart" company would go for short term profits instead of long term growth? I find that one hard to believe to be honest.
|
Well, some companies have the financial stability so they do not have to sacrifice either. The company in question has been bleeding money for quite some time.
And most companies that reinvest for long term growth, usually use PROFITS to reinvest. When a company is suffering loss after loss, it needs to stabalize the decline in capital value.
And I never said the the two are mutually exclusive; however, what company would allocate resources to development on future projects at such an extent as to totally exhaust profits in the same fiscal year as their tentpole release?
Do you know what kind of message that sends to investors? You're a company already in trouble....you just released your defining title and there is still no real benefit evident on the financial statements?
I'm not a fanboy, I just try to tip the balance in favor of logic and common sense.