You know when you see a hot young woman, first year at uni, and you think, '...in about e years... when she graduates and gets her first 'real' job.' that is called prospects. With shares it is called future value. All shares theoretically trade at a discount to their future value. This explanation is imperfect but it is also very short explanation of many complex factors. Anyhow, that is how a company with no profit goes up and up. Also as investors we don't want dividends.
A dividend is someone giving you money you don't need at a time that suits them, and causes tax issues.
We want price growth, that way we can sell when it suits us and we can get say 50% CGT benefit. and we can choose HOW MUCH we get.
So we want the company to just keep investing in growth and keep the earnings. Many people do not plan tax very well.
If you are investing for day to day income your kind of screwed from the get go. You want this stuff in your bottom draw for 1/4ly review not in your top draw for weekly review and do not want this on your desk for daily review.
APT Price at posting:
$43.46 Sentiment: Buy Disclosure: Held
