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Ask the Fool: Do sales tell the whole story?

Ideally, a company will have growing revenue and growing profits. But even good companies can have a year or two in the red — perhaps because theyre spending heavily on advertising or on growth, or because theyre facing a temporary setback. And younger, smaller companies may run many losses in their early years. So unprofitability isnt necessarily a deal-breaker, but its best to focus your dollars on companies that are reliably profitable. With any possible investment, study its financial rep...
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