Cash is King for both old and new stocks. It centers on growth prospects, earnings expectations and viability. Viability depends on cashflow and cash reserves. The older companies generally have large cash holdings to weather economic storms. New companies need cash to get quickly established as a dominant force or else get relegated to the pile of also-rans or bankrupts.
Cash is the financial lifeblood of an organization.
On the other hand, upstarts and new economy companies, tend to require higher cash outlays to get them aloft. Due to that performance, those companies are rewarded with high PE multiples. Burn rates are important for both groups but new economy stocks are compelled to flourish quickly or perish. We can help you leverage your cash, knowledge, and business on the internet. 1998-2000 Barkley International Inc. All Rights Reserved.