No growth but good profit!!

Discussion in 'Trading' started by hajimow, Jul 29, 2005.

  1. It seems that we don't see any growth. What we see is good profit that comes by reducing costs and slashing jobs. Can it sustain? Is it a temporarily solution? Personally I think that the companies are forced to do that out of desperation and just to make the street happy.
  2. Chagi


    I'm not really sure that it's a temporary situation. I think that what happened is that many companies had the living you know what scared out of them recently by the economy post-9/11, and did a lot of belt tightening as a result of that. There are also many companies right now that are sitting on piles of cash.

    As for the lack of revenue growth, I can't really comment on this, because the opposite appears to be happening up here in Canada. Commodities are booming, and as a result our economy is booming, lots of cash floating around, life is good, etc. I also happen to live in Alberta, which is pretty much the center of the commodity boom, and aside from the weather, I don't see much problem staying here for another 10-20 years....heck, our TSX Comp is at 4 year highs. We may even potentially see parity between $USD and $CND sometime soon.