Why do investors invest in companies with a history of net losses?

Question

i.e.

ONVI
JCDA

Answer 1

Sometimes a company may be engaging in new and developing technologies , like back when they were just moving to completing the mapping of the genome / DNA .
Sometimes now , there are companies doing battery research or alternatives for electric vehicles so they are not yet profitable .

Other times it is an old and dying company but there is this thing called the "dead cat bounce" .
Although there is a down trend , there is still volatility and some people try and make $$$$ short term on the 'bounce' .
Like Kmart bounced several times before finally going under in bankruptcy (then taken over by Sears) .

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Answer 2

I am not sure about those companies per se. But in general it is the expectation of the future of the company. A company that loses money does get to avoid paying taxes on the money they do make for example so there can be a value in that part of the company.

Some companies also grow in leaps and bounds once the infrastructure has been set in place and then that can lead to massive profit growth and hence there is a possibility of then massive profits in the stock.

Answer 3

the potential that the stock price is low relative to the future potential profits the company can employ or receive which can create the stock price to skyrocket

also some actually invest in these companys hoping they do create losses to offset any capital gains they receive thus protecting their taxes a bit....weird logic but it works i guess

Answer 4

when i was 16 years old.a company had a 25 cent per share stock. it was going down hill fast..i just had a feeling it would prosper, i sold that stock two years later for $5.00 a share!
when a company is in the hole and has losses they fold under are get better.so its a gamble,some people like to gamble.

Answer 5

Story, greed, hope, and ignorance:

Ppl like to think they can find the next MSFT or GOOG ahead of everybody else.