Well, that's one way to run a railroad. They can just buy some plausible-looking companies with their cash stash and tape them together into a conglomerate that at least earns a bit of revenue. The problem is that they are still bleeding out money, and it's going to be considerably harder to get hyper-growth out of an unwieldy conglomerate.
The usual strategy is to buy a few revenue-earning subsidiaries and hope that the magical P/E ratio that previously applied to you also applies to the earnings of the conglomerate you're building. Works until it doesn't.
GSW Price at posting:
18.5¢ Sentiment: None Disclosure: Not Held
