but if you own companies that can generate cash and you don't have to sell them you should be ok
well one thing is if it is money in super then it is locked away anyway
the next thing is the company generating cash?
that is very important because even if it isn't making a profit but it can pay its bills as the fall due, it will only be matter of time before the company starts to turn a profit
Profit is a bit an accounting thing and not a real indication of whether or not the company will survive
You can find out if the company is cash positive by looking at the cashflow statement
you should find that it consists of three sections
operating activities investing activities and financing activities
investing activities would include cap expenditure which can be curtailed
probably the most important is the the operating activities section in particular look at "interest recieved" and "interest paid" subtract one from the other then see if the "net operating cash flow" will cover the interest payments
Also find out if the company has to refinance in a hurry. So try to find out how much short term debt it has.
If the company is generating positive cashflow and can cover it loan repayments it should be ok
all you have to do then is sit on your shares and wait for them to go up If you sell at a lose you may never recover.
