If you have been reading my blog long, you know that I find it amazing how many telecom companies have little real cash flow, income or profits. Well, Fred Wilson gave me a lesson in company value:
"The lesson here is that you can't just value a company by taking its current performance into account. You really need to have a view towards its future performance. And you need to understand why the company is not currently profitable."
Where does the money go? Is the money invested in sales and marketing? R&D? Is the money that would be profit or income being invested wisely? Those are good points. (And the comments section talk some things too.)