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Key phrase: "future cash flows" And it is actually future profits. Revenue moves all over the place, as do expenses. Toss in comparison to prevailing interes
by sloaken 6y ago
Key phrase: "future cash flows"
And it is actually future profits. Revenue moves all over the place, as do expenses. Toss in comparison to prevailing interest rates. You have 3 variables.
These are then in turn influenced by social desires, competitors, and regulation.
What is surprising to many people is companies desire to have more regulation as it reduces competition.
Social desires is why companies advertise.
Therefore if you have a long term contract to advertise on a TV show that now becomes the MOST popular show ever ....
And then of course there is the new regulation which will cost you a dollar per product, but will kill off any new startup as they do not have the resources to address it ...
Oh and the rain fall in Cuba has ruined the crop for a key component of your product driving your costs up, but your competitor gets the component from Chile ...