Would you buy a stock that did not generate a profit yet and that was negative cash flow?

Question

Why would you do that? Some people do every day.

Answer 1

enterprise value is a representation of all future cash flows, not all current cash flows.

long-term investors are able to look past the company's current profitability to get a better return on future cash flows.

Answer 2

I would, if I thought the stock had enough potential for a profitable future.

Remember the value of a stock is based on expections of future profits. Obviously a company that is not making money is riskier than a company that is profitable, but the potential return is almost always higher as well, usually much higher.

Answer 3

Because the idea is that the valuation of the stock is reflective of this fact and bears a view to the company one day becoming profitable.

Frankly that goes without saying really.

Answer 4

Some people do it to show losses during the year. on there taxes at the end of the year. that way it really sdosenot look like they made alot of money which in turn means less taxes to pay

Answer 5

I want to understand what you ask;  Isn't this what is done to

shift the market to a place where you want to manipulate it to?  Then it would be a wise reason to buy (with no profit in sight  at present But in the long run there will be Plenty of Profit for the ones playing the MARKET GAME.)

The Oil and Gas deals sound like they are controlled by such stock maneuvers.* Montana's BLM (Bureau of Land Management) is an example .Source below.

The stock buyers that have money to loose, do it all the time

to make we the little guy fall deeper into the SH__ pile!

Peace!