Yes there is always the chance of a company going under, however, we won't see it in the near future. My friends who view this need to seriously educate themselves on Accounting & Economics. Yes there are ways for companies to manipulate profits for example there are 214 legal ways to value an asset and to depreciate them, some reduce expenses to companies, others increase etc. If you look at the figures which matter (as companies can get profit from other investments) look at its primary business sales.... its revenue from that is still substantial showing they are producing a solid income. Secondly they are still making a profit, thirdly even if they do go into the negatives a company can still last! sorry to break it to every one but does anyone know a company called Apple? They had a similar circumstance 1996 net returns were -8%, the following year -15%, they kept a few 1% and 0% for a bit.... then what they get 25% returns.
This shows just because of a little trouble they are having now does not mean the end!
Oh thought i would add even if they don't declare dividends that is better for the company, more money for them to spend. Microsoft didn't declare one for 22 years, did the share holders care? nope their shares went from $1 in value to $200. Also who cares if they get a loan, if a company has a loan less than 40% of its let assets it shows management can be lazy, however if its above 75% thats when you should worry.
This shows just because of a little trouble they are having now does not mean the end!
Oh thought i would add even if they don't declare dividends that is better for the company, more money for them to spend. Microsoft didn't declare one for 22 years, did the share holders care? nope their shares went from $1 in value to $200. Also who cares if they get a loan, if a company has a loan less than 40% of its let assets it shows management can be lazy, however if its above 75% thats when you should worry.