Location? Location?? Location???
There is the age old saying in the real estate world that the three most important factors to consider before making a purchase decision are location, location, and location. Here is my ameture attempt at an enticing listing for a house.
Own a piece of history! This 4 bedroom, 2 bath castle built in the Second Empire architectural style is a commuters dream. Enjoy 360 degree water views while skipping ALL the traffic on your way into the big city. From Broadway shows to Wall Street deals - the world is your oyster from this one-of-a-kind perch. Fish in the morning mist and bask in the afternoon sun on your own private beach. Enjoy country living with downtown access. Bid early and bid often!
If you had read just the text and viewed just the photos, you might think that this was the find of a lifetime. Glancing at the map might add some cause for concern and make you think that this listing is not for everyone. Diving past the headlines and looking under the surface is part of our job.
Earnings! Earnings!! Earnings!!!
Under the surface of the beautiful office buildings and impressive products that adorn the glossy pages of an annual report are the true guts of the operation. These guts include sales revenues, variable expenses, fixed expenses, and net profits. Let us put this into summer terms that may make the story more entertaining. A fish generates energy by a combination of the food it consumes through its mouth and the oxygen it pulls through its gills. It expends this energy while either cruising around or evading predators. The faster it can swim, the more likely it will live to meet another day. This speed is akin to the net profits for a fish as it can be used to catch other fish for food and "reinvest" back into building more muscle. One of the most important concepts for investors is to understand the structure of an income statement for a company whose stock we may want to purchase.
We can see that AquaBounty Technologies, Inc. (AQB) has much higher expenses than revenues. This results in negative earnings that have been growing even more negative over time. Clearly, they are swimming slowly enough that they may get swallowed whole by their competition or a hostile acquirer. Their next earnings announcement is due between August 4 and August 9. Time will tell if they can turn their ship around fast enough before they hit a reef.
Sale? Sale?? Sale???
Wordsmiths have a way of bending reality through their spelling, grammar, or delivery. All retailers will try to lure you into a purchase by telling you how much money you will save when you purchase their goods that are on sale at any given moment. Of course, the best way to save money is to take it out of your wallet (for those who still carry cash) and deposit into your savings account. Better yet, invest it so that it works harder for you. After that skipped purchase is long forgotten, your revenue will surpass your expenses as you generate positive earnings. These can compound over time to provide you with the power of financial freedom that can be used to quench your thirst for adventure.
Sail! Sail!! Sail!!!
We Sail Wednesdays! https://docs.google.com/forms/d/e/1FAIpQLSc__tU1PIPpnR-Y4XJWh0RUNCIzEC40S3MYBMTyXrfXdlYr-w/viewform?usp=sf_link
We Sail Saturdays! https://docs.google.com/forms/d/e/1FAIpQLSfur8E7JVGPLp_9CTWEgECggIMlLYBrqCq0-L32vYpml5XIFA/viewform?usp=sf_link
We Sail Sundays! https://docs.google.com/forms/d/e/1FAIpQLSdOS3INtqxn-uSzRbJEZw1qz2mqhrj0_3dc1igMDJrH4ktwkw/viewform?usp=sf_link