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This comment is on every S1 thread. And every time someone mentions that it is essentially standard copy for all S1s, because you can never guarantee anything o

This comment is on every S1 thread. And every time someone mentions that it is essentially standard copy for all S1s, because you can never guarantee anything on the market.

schneidmaster 7y ago
Right, it is strongly in your best interests to be as pessimistic as possible in your disclosures. Even if you expect to turn a profit next year, the market is finicky, and if you don't meet your projections then absent these sorts of S1 disclosures you open yourself to legal liability for misleading investors.
cremp 7y ago
Except something that is not the same for all S1's, is the history of losses. For a business to really give a positive, something needs to change, otherwise they stay negative. Edit: > and we expect we will continue to incur net losses for the foreseeable future That is not a common statement.
- nmjohn 7y ago
  Search google for `site:sec.gov and we expect we will continue to incur net losses for the foreseeable future` - a nearly identical phrase is a frequent occurrence
6cd6beb 7y ago
>We have incurred net losses in all periods since we began operations and we expect we will continue to incur net losses for the foreseeable future. The admission that "we've never made money and there's a good chance we never will" being boilerplate S-1 copy is monstrously troubling. When no one needs to see that a company can made a dollar before investing because profit is for suckers and this company's probably going to be a unicorn, maybe that's the stock tip from the shoeshine boy.
- notfromhere 7y ago
  You can't legally guarantee a return unless you actually guarantee a return
  - 6cd6beb 7y ago
    Fair enough, but there may be a small middle ground between "guaranteeing a return" and "never made a dime in profit and in fact is burning through millions or billions of dollars annually with no expectation to stop any time soon"
    - notfromhere 7y ago
      that's why you should learn how to read financial statements before making investments in instruments like stocks.

This comment is on every S1 thread. And every time someone mentions that it is essentially standard copy for all S1s, because you can never guarantee anything on the market.

schneidmaster 7y ago

Right, it is strongly in your best interests to be as pessimistic as possible in your disclosures. Even if you expect to turn a profit next year, the market is finicky, and if you don't meet your projections then absent these sorts of S1 disclosures you open yourself to legal liability for misleading investors.

cremp 7y ago

Except something that is not the same for all S1's, is the history of losses. For a business to really give a positive, something needs to change, otherwise they stay negative. Edit: > and we expect we will continue to incur net losses for the foreseeable future That is not a common statement.

nmjohn 7y ago
Search google for `site:sec.gov and we expect we will continue to incur net losses for the foreseeable future` - a nearly identical phrase is a frequent occurrence

6cd6beb 7y ago

>We have incurred net losses in all periods since we began operations and we expect we will continue to incur net losses for the foreseeable future. The admission that "we've never made money and there's a good chance we never will" being boilerplate S-1 copy is monstrously troubling. When no one needs to see that a company can made a dollar before investing because profit is for suckers and this company's probably going to be a unicorn, maybe that's the stock tip from the shoeshine boy.

notfromhere 7y ago
You can't legally guarantee a return unless you actually guarantee a return
- 6cd6beb 7y ago
  Fair enough, but there may be a small middle ground between "guaranteeing a return" and "never made a dime in profit and in fact is burning through millions or billions of dollars annually with no expectation to stop any time soon"
  - notfromhere 7y ago
    that's why you should learn how to read financial statements before making investments in instruments like stocks.