Thursday, April 14, 2016

Hurry Up & Get Biggest!

You can grow your own company and avoid the mess corporate in which corporate America is mired...  their jig is up.
Longer-term, if these new secular trends working against profit margins are to remain in place, earnings growth will be much harder to come by for corporate America than it has been over the past few decades. And there are plenty of signs it is already becoming very difficult for them. Corporate cash flow has essentially been flat for the past five years. At the same time, more and more companies recently have resorted to financial engineering via buybacks, non-GAAP reporting and even outright fraud. My guess is this is all in an attempt to make up for broadly slowing organic profit growth due the these secular tailwinds shifting to headwinds.
Alaska Air is buying Virgin, Branson is smart enough to cash out.  This is a nice analysis.

Feel free to forward this by email to three of your friends.