NEA 0.00% $2.10 nearmap ltd

The best way to solve the short-selling problem is to make a net...

  1. 4,223 Posts.
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    The best way to solve the short-selling problem is to make a net profit sooner, rather than later, and throw off enough cash to expand without capital raisings.

    I suspect some readers are itching to tell me that Amazon lost money for a decade, and probably a few other now-successful companies did likewise. However, firms like Microsoft were profitable before listing, and and stayed profitable. The likes of Oracle and Google were either profitable soon after start-up, and have been profitable since listing, or soon thereafter.

    ESRI, which is privately owned GIS business whose systems support Nearmap, has made profits and grown almost since Day 1, but its accounts are not in the public domain. It took James Goodnigh of SAS (also a privately held company) six months to be profitable, and his approach to staying profitable is simply to keep the cost and expense total below revenue.

    One only has to google the big names of tech companies that grew very quickly, and you will find many of them were profitable very soon, and kept on growing. Some like SAS and ESRI did not even need the start-up funding that a float would have brought in.
    Last edited by Pioupiou: 02/06/21
 
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