Re:Fixing the ‘Brain Damage’ Caused by the I.P.O. Process
by sulam on Wednesday September 20, 2017 @02:32PM
(#15296854)
Yeah, I don't think you'd even have to run out of money. There are plenty of companies generating a fair amount of cash flow that hover in the dangerous territory of < $3 a share. It only takes one bad quarter.
Here's an example of a company that generates cash but only recently is in the safe-ish territory:
(Not that I think they are emulating Amazon, mind you, just making the point that you can have a going concern, and still get delisted.)
More broadly, unless you have an amazing business, you probably shouldn't emulate Amazon (or Google, or FB, or any other business that is depending on free cash flow to fund R&D as opposed to generating profits).
Here's an example of a company that generates cash but only recently is in the safe-ish territory:
https://finance.google.com/finance?q=LLNW
(Not that I think they are emulating Amazon, mind you, just making the point that you can have a going concern, and still get delisted.)
More broadly, unless you have an amazing business, you probably shouldn't emulate Amazon (or Google, or FB, or any other business that is depending on free cash flow to fund R&D as opposed to generating profits).