Source: ShutterstockFor beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.In contrast to all that, many investors prefer to focus on companies like $Occidental(OXY)$ , which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity aroun
$SVB Financial Group(SIVB)$ "Companies sometimes declare bankruptcy with little warning. Other times, there is a slow fade to the end. A short seller who didn't buy back the stock before trading stopped may have to wait until the company is liquidated to take a profit.However, the short seller owes nothing. That is the best possible scenario for a short seller. Eventually, the broker will declare a total loss on the loaned stock. At that point, the broker cancels the short seller's debt and returns all collateral."
$Apple(AAPL)$ That's good. Outstanding Apple shares are now at 15.8B, so Apple is steadily repurchasing shares. Relative to the overall market my Apple shares are growing in value. If Apple drops 20% this month with the rest of the market, Apple can repurchase even more shares. I won't lose any sleep over a slumping market or concern myself with daily market fluctuations. I'll let the sissies worry and comment about the end of the world when their stock drops a couple of dollars.
In the near term, these misses are definitely going to drag down the market. Feb should see stocks give up some gains from January. But investors are forward looking. The worst should be over. The cost savings from layoffs now will be reflected in future quarters. Prices will continue to trend up over time. It will always be a 2 steps forward, 1 step back process.