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Without knowing the particulars of that specific company, this doesn't always hold true. Companies in this situation (handsomely profitable but little/no growt
by senko 5y ago
Without knowing the particulars of that specific company, this doesn't always hold true.
Companies in this situation (handsomely profitable but little/no growth) can start issuing dividends (or share buybacks).
True, they wouldn't be valued as a growth company any longer, causing a dip in the stock price, but that wouldn't necessarily mean continuous decline until oblivion.