RE: Nice profit increase26 Jun 2014 10:11
As an investor I want to see a return on my investment from either dividends (based on the profit the company makes) and/or growth in the share price (based on the potential of larger profits in the future). The problem we seem to have is that although it all looks good on the high street (large nice stores, plenty of sales, a good story), the profits just aren't there. If the same carries on (being squeezed on price by competitors and no significant saving to be made by reduction in cost of stock or in running the business), the profit margin (P/E) won't increase so there won't be decent dividends or good share price growth. My money would be better of earning interest in the bank (only joking), or better invested in other companies that look like they are in a business where the profits/share price will rise. Only enough investment money to go round. 2.5 years after buying in and making a nice return, I've sat around for the last 12 months hoping for the best. This is a good company, I just don't see the growth anymore. I think it is time to move my nest egg somewhere else.