October 13, 2009

Today's column is short and to the point.

Several radio companies are seeing signs of business turning around and are expecting to have positive growth in the next few months. Radio stocks are generally moving in a positive direction. If it continues, what will be the result?

Will companies take more profit and feel the massive cuts over the last couple of years have "made us realize how much of our revenue was being wasted in the past"? After all, more profit = higher stock prices. Or, will companies breathe a sigh of relief that there is now more cash to roll back into the industry to make it more competitive?

I hope it's the latter. Stocks might not grow as fast, but the chances of larger growth over a longer period are greater.