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Aerial business is to show businesses that do not actually exist or have almost no actual situation, as if they are growing.
It is dangerous for investors to evaluate corporate value by mistake when sales, customers, implementation results, and new businessテーマ are seen more than actual.
For beginners, let’s first check three things: whether sales and cash are matched, whether customers and business partners can be explained separately, and whether business descriptions are only abstract words.
First Con まず
There are three main points that an individual investor should look at in order to see an open business.
| ation Point | Reasons to See |
|---|---|
| Sales and cash | If there is no cash only after sales, you need to pay attention to actuality |
| Customer specificity | Businesses that do not know who is buying are difficult to confirm demand |
| Clearance of Business Description | The explanation of only abstract words is difficult to see the work |
In investment, it is important that the company "who, what, how to sell, how to make cash" than the growth theme itself.
If this explanation is not possible with your own words, it is safer to have a sudden investment decision.
What is an airspace business?
空ctitious business is to show a business that is not real, like a business that actually exists.
The following cases are available:
- Explained as a growth business for services that are not actually running
- Show non-existent customers and deployments
- Only sales are recorded and cash is not collected
- Show substantially restless subsidiaries and projects as important business
- No specific revenue model using the name of the popular theme
Of course, new businesses may have small sales and profits at the initial stage.
The problem is not a mature business.
The problem is that even though the actual situation is poor, it is to show it as "the business already growing" by the material and explanation.
Why Dangerous
The danger of aerospace business is because it shows the value of the company.
The stock price動き not only current profit but also future growth expectations.
That’s why investor expectations can be increased by just seeing popular like AI,V, universe, bio, and web3.
| View | How to check |
|---|---|
| Launched AI new business | Is there a customer, sales, development system and usage record? |
| Expanded overseas expansion | Is there a local sales, contract, and recovery record? |
| Announcement of Large Partnership | Is the content that the affiliation connects to sales and profits? |
| Established a subsidiary | Is there an actual personnel, assets or trade? |
If the investor believes only the theme, it is possible to buy a stock at a price higher than the actual situation.
Note 1: There is no sales, but there is no increase in cash.
The most important point is the relationship between sales and cash.
Please note that even if the sales on accounting are increasing, cash is not included.
Check the following movements:
| Sign | See what |
|---|---|
| Sold out | Sales are recorded, but may not be collected |
| Low cash flow | Possibility of not earning cash in the business |
| Earnings decrease cash balance | Possibility of accounting profits and recurring funds |
| Small number of suppliers | の確認ation, circulation, and temporary transactions |
For beginners, "a company that does not have cash" should be stopped once, even though it seems to be profitable.
Of course, there are companies that temporarily weaken cash flow due to growth investment and inventory increase.
What is important is whether the reason can be explained in the company document.
Caution 2 Not specific to customers and business partners
The explanation of customers and business partners is ambiguous.
Examples of dangerous descriptions are:
- "Incorporated to a large number of companies"
- Collaboration with major companies
- "High evaluation in Japan and overseas"
- "Multiple projects are in progress"
- "Expect large demand in the future"
These expressions are not bad.
However, you can check the following points.
| ation | Search |
|---|---|
| Customer name and industry | Financial Results, Investor Relations and IR Materials |
| Co ity of Sales | Monthly billing, contract period, cancellation rate |
| Trade Size | Sales, Segment and Major Client Information |
| Recovery status | Receivables, sales CF, loan |
A truly strong business can describe who they are providing value.
If you don’t know who is buying, please be careful.
Note 3 Description is only abstract
Explanation can be abstract in new business with aerospace and low actuality.
For example, only the following words are 。.
- Next Generation Platform
- Innovative Solutions
- Unique Ecosystem
- New Value Using AI
- Global growth opportunities
These words may be explained to you, and you may have not explained anything.
The following three things should be confirmed:
| 質問 | How to check |
|---|---|
| Who sells | Customer, Industry, User |
| What to Sell | Products, Services and Features |
| How to make profit | Price, billing method, cost, co、ity rate |
If you can’t see these three things, your business may be weak even if you have a growth story.
Be careful about popular
In the sky business, it becomes difficult to see when combined with an easy-to-understand theme by investors.
In particular, expectation is easy in the following areas:
- AI
- Semiconductor
- EV
- Space
- Bio
- Web3
- Medical DX
It is not bad to enter a popular theme.
However, it is easier to find actual sales, profits, customers, and technical skills when judged only by the theme name.
SEC and Investor. gov also encourages investing fraud to be aware of such things as “promise high returns at low risk”, “imburse investment now”, and “not give time to investigate with ambiguous explanation”.
It is important to look at numbers and cash in a calm manner as the theme is strong.
Checklist for Individual Investors
Find out if you can answer the following questions before investing.
| 質問 | Location |
|---|---|
| What does this company earn? | Financial statements, business descriptions, securities reports |
| Is sales connected to cash collection? | Sales CF, Receivables, Cash Balance |
| Customer or business partner | , Major Customers, Segment Information |
| not only abstract | Product name, price, billing model |
| What the business may fail | Risk information,, regulations, and funds |
If the answer in this table is hardly buried, it may not be enough to understand yet.
It is important to not buy anything that you do not know in investment.
Common failures
There is a common point in behavior that is easy to understand the erosion business and the powder decoration risk.
- SNS
- Buy only with theme names such as "AI-related" and "Space-related"
- Find out why stock prices are rising
- Decide by news heading without finding financial statements
- Look for sales only, do not see sales CF or accounts
In particular, it is important that beginners do not invest only in the sense that "the future is so good".
It is important to see the possibility of the future, but it is important to check the current status in investment decisions.
Aerial business is to show unrealistic business like a growth business.
There is a risk for investors to believe in sales, customers and性.
The following three basics are:
| Point | Check |
|---|---|
| Sales and cash | Are sales connected to actual deposits? |
| Customer specificity | Who can explain who is buying |
| Clearance of Business Description | How do you know who to sell? |
Before investing, let’s explain what this company sells and makes profits.
If you can’t explain, you need to continue research or make decisions to invest.
出典
- Investor.gov "Red Flags of Investment Fraud Checklist": https://www.investor.gov/protect-your-investments/fraud/how-avoid-fraud/red-flags-investment-fraud-checklist
- SEC "Be Alert for Telltale Signs of Online Investment Fraud": https://www.sec.gov/investor/pubs/cyberfraud/signs.htm
- Investor.gov "Investor Alert: 10 Red Flags That an Unregistered Offering May Be a Scam": https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/investor-36