There are a few missing words but "Profit" is key.Companies like...

There are a few missing words but "Profit" is key.

Companies like Compass Resources (ASX:CMR) had billions of dollars worth of commodities in the ground and was almost valued at a billion dollars at one stage peaking at around a $7 SP without any revenue.

Compass then tried to get the resources out of the ground and it cost so much more and ran so far over schedule than originally thought that the SP pulled back from $7 to 0.80 cents at which stage the company director bought 100Ks of shares.

Within months CMR was insolvent and is now on www.delisted.com.au.

I do not hope this happens to any company but I think the governing bodies need to enforce that forecasts of revenue, profit, expenditure and BOD wages be updated in quarterly reports.

It certainly would save me a lot of time on these boards trying to obtain fundamentals before investing in a company.