mad825 said:
KingsGambit said:
]The company made $500mill in sales, but investors were "disappointed". They don't want dividend cheques, they want growth, and that's what you won't get with AAA games publishers.
Well, the whole point of investing is to get dividends. What likely happened was that Activision gave this huge impressive power point presentation how they will be able to stuff their turkeys with $100 bills at the end of the year and instead the investors got a goose...Stuffed with $100 bills. One thing that companies don't want are investors placing their money somewhere else so they often get
creative with figures. Some dodgy companies *cough*cough*TellTale*cough*cough would even resort to ponzi schemes to make their figures look good.
Dividends are absolutely a legit reason, but it's not what most investors want. They won't want a few % ROI (return on investment), getting a cheque twice yearly paying out 0.3c a share or whatever.
Some people absolutely want to invest their money into "safe" companies. Companies that are proven to generate profits and thus dividends. But most investors want serious growth so that share prices increase. Someone who invested a couple of $1,000s in Apple in 1997 would be a millionaire today because of the crazy growth they experienced in the Naughties. If share prices double, your $1,000 becomes $2,000 and that's what these guys want, only not double, they want more!
It's why these guys are so shortsighted, they'll undermine gameplay and ruin the reputation of their games to make as much as they can in the shortest space of time. Nothing else matters. Not long term, not reputation, not quality, not loyalty, just short term profit. Buy low, sell high, move on.
I don't know about TellTale TBH....to my knowledge, I didn't think they were publicly traded before they went bankrupt?