Growth to investors is often more improtant than paying the bills however as this money might not be needed to pay bills as it is with a lot of buyers. Plot the quarterley results and predict the future. maybe he sees that future very rosy indeed for Easyrecycles. Lets say I buy a house to rent. If it were on mortgage i'd be looking for an 8% compounded return to pay for mortgage, upkeep and such and end with perhaps a small surplus per month. I would look for an easy turnover as I can't afford to pay for the house if no one is in it. If I had the cash on hand or am less reliant on its monthly income, I can be more speculative. I could now buy a property that whilst in the meantime might not cover monthly expenditure could reap rewards in the future, ie a new complex being built near it in the future that will raise it's capital appreciation as well as increase it's monthly income above the 8% I would have looked for had I been reliant on it covering it's running expenses. These are numbers looked at by investors. Buying a fast growing company for only its capital value would not be feasible and no one would be crazy enough to sell their company on this basis
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