For a long time investors have been chasing companies with conceivable stories, but big losses. While holding long-term can turn those losses in to nice gains, the vast majority don't "make it over the hump".
In a down market, no earnings provide no support for those equities and the investor is "Livin' On A Prayer". "When the tide goes out, you see who is swimming without a suit." While revenues are important, some of those dollars eventually have to fall to the bottom line for long term success.
The story has to be especially strong for firms with no earnings. Companies with earnings can suffer in a down economic cycle, but with no earnings, companies can go "six feet under". Like most people I had to learn this the hard way and it was painful.
So keep your trunks (earnings) on when you venture out into the ocean, rip tides can be hazardous to your heath!
Be smart, be well-read, be aware and be successful.
