Not exact matches
Behaviorally, people may ignore these potentially
profitable, yet also perhaps more boring
companies, and instead veer toward potentially more exciting, yet also less stable, growth and lottery - like stocks (for example, because the more exciting stocks
tend to be featured in colorful news stories).
Hedge fund activists
tend to target
companies that are typically «value» firms, with low market value relative to book value, although they are
profitable with sound operating cash flows and return on assets.
According to Michael Mauboussin, investment strategist at Credit Suisse, the smaller pool of public
companies presents a challenge for stock pickers because those
companies tend to be «fewer, bigger, older, more
profitable and easier to analyze, making stock picking much more competitive.»
It wasn't long ago that credit card
companies cut out 0 % APR offers and balance transfers since those with better credit
tended to also be less
profitable as they usually paid off their balances.
A growth
company tends to have very
profitable reinvestment opportunities for its own retained earnings.
Public
companies tend to be more
profitable than
companies on average (that's why they can go public) and will usually see larger gains relative to the larger economy.
In the first installment in this series, we discussed how, contrary to conventional wisdom, the most
profitable industries historically have
tended to be not the
companies most closely associated with technological innovation, but rather those that are least subject to disruption.
«These
companies tend to be more
profitable and less volatile than their smaller counterparts.»