No growth but good profit!!

[hajimow]

It seems that we don't see any growth. What we see is good profit that comes by reducing costs and slashing jobs. Can it sustain? Is it a temporarily solution? Personally I think that the companies are forced to do that out of desperation and just to make the street happy.

 

[Chagi]

Quote from hajimow:

It seems that we don't see any growth. What we see is good profit that comes by reducing costs and slashing jobs. Can it sustain? Is it a temporarily solution? Personally I think that the companies are forced to do that out of desperation and just to make the street happy.

I'm not really sure that it's a temporary situation. I think that what happened is that many companies had the living you know what scared out of them recently by the economy post-9/11, and did a lot of belt tightening as a result of that. There are also many companies right now that are sitting on piles of cash.

As for the lack of revenue growth, I can't really comment on this, because the opposite appears to be happening up here in Canada. Commodities are booming, and as a result our economy is booming, lots of cash floating around, life is good, etc. I also happen to live in Alberta, which is pretty much the center of the commodity boom, and aside from the weather, I don't see much problem staying here for another 10-20 years....heck, our TSX Comp is at 4 year highs. We may even potentially see parity between $USD and $CND sometime soon.