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 Q&A, General question on stock market

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cherroy
post Nov 19 2013, 09:34 PM

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QUOTE(plumberly @ Nov 18 2013, 07:23 AM)
The life of a company is in stages, e.g., startup, growth etc.

How can one tell which stage a company is in?

From sales figures (the rapid growth, the plateau, the decline)?

Any other parameters to gauge the company life stage?

Many thanks.
*
Generally sales number is the one to look at.
Generally a growth company has high revenue improvement yoy, typically 30%, 50% or even 100% revenue growth over the year.

But sometimes, revenue growth can come from inflation, price surge etc. instead of volume growth.
Typically, when oil price spike, you see oil company revenue shoot up.
Same with plantation company.

Every company, every industries, every business is different to each other.
So it is needless to be too "academic".
Something that generalise in the book theory, doesn't mean reality must be the same.

Every sector has its boom and burst, also has its period of glory or stagnation, has its own issue etc.

Some can continue to grow non-stop, typically eg would be banking, as banking loan, and business generally will only become big and bigger.

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