Clearly from the title, this is a post for the BTA management, I hope they will learn why shareholders in a proper (not run by mad scientists)company expect to get some cash.
Every investor goes in with dreams of a pot of gold, but there is a fundamental dichotomy of investor types – one looks to line their pockets with investment returns along the way, and another who is patient to wait until the end of the rainbow to reap the rewards.
Investing for growth will tend to require a longer time commitment, as assets such as shares or property will be anticipated to increase in capital value over time rather than provide a quick return. Investors wanting to build wealth over the long term will want to put more money into assets that should increase in value. Having a longer time horizon will also allow some shock-proofing for the inevitable ups and downs of markets.
Investing for income will have more appeal for people who are counting on some cash to meet living expenses or meet some short-term goal. While the aim should include keeping the principal base stable, the idea is to have a predictable income stream from interest payments or dividends that are earned on the value of that principal amount.
A company that emphasises growth will more likely re-invest profits back into the company, and so not allocate the same amount of earnings for dividend payments to shareholders. However it is that re-investment that should see increased company value (and share price), which will translate into cash for the investor when the stock is eventually offloaded.
Shareholders invest for income and/or growth. Unfortunately, BTA management haven't organised a predictable income stream from interest payments or dividends and they don't re-invest profits back into the company, they have an Employee Option Plan cash cow for themselves instead.
That explains why long term BTA shareholders are like stunned mullets.
BTA Price at posting:
82.5¢ Sentiment: None Disclosure: Held
