Whats hard about this: when earnings go up, the expectation is...

Whats hard about this: when earnings go up, the expectation is that dividends will get paid, and if dividends are increasing the SP will increase. If I told you in advance a given company will NEVER pay a dividend would you still go and buy shares in that company?

If the answer is yes, what can I say... good luck in the future, you're going to need it. You simply don't understand the fundamentals of stocks.

I personally have bought shares that I knew probably wouldn't pay a dividend (hell, I foolishly bought JPR) and I've had some wins and some losses, and I think I'm about break even. But where I've made by far the biggest wins are shares that were fundamentally under priced (FRI bought at $0.38 a few years ago; UOS bought at $0.10, $0.12, $0.22 an $0.29; WBC at $15; AZO at $0.38; TLS (T1) at $1.95, sold at $3.35 - got out when T2 floated, never bought T2 or T3), WES at $17) all of them made me good money! My list of speccies is as long as your arm over the last 10 years and I've learnt the hard way a few times so now I restrict the % I invest when chasing the 1000-bangers so I dont mind copping it sweet (as I am on JPR).

Fundamentals have proven to be the winner time after time. I'm looking at COF now. Numerically it stacks up, just have to look into what its up to etc but I'll probably drop $10k on that and watch it grow over the next 2-3 years.

All of those shares (except AZO, but I like the fnudamentals and the directors) paid dividends so I got incoming cash revenue and along with that, that share price increases, as their earnings increased - because their returns to the shareholder were increasing.

Anyway - I'm over and out here. I've tried to talk sense, I;ve been proven right so far as I had a sell on JPR and its halve in price, I warned that JPROA would go from $0.02 to worthless quickly 4-5 weeks ago, and I was right. I believe my credibility is in tact, which is more than I can say for the people posting nothing but hope time after time.

My last advice - if you're using these boards try to work out who has genuine credibility, and who is just talking hype and restating hope over and over - thats the key to getting 2 good sides to the debate. Be skeptical ahead of being hopeful, you'll make more money because you'll have facts to back up your decisions.

Rusch