cos1000

15 Companies That Might Not Survive 2009

How would you propose that a company such as Sirius Xm build their network of satellites and recruit the best of talent. Developing a business model that doesn't include debt in its start-up is a bit naive. Conserving cash for operations until the venture becomes self sustaining is part of the leveraging process that gives a new company the most bang for the buck. Although, I agree that if the business model is bad that obviously the business will fail. The fact of the matter is that a bad business model only gets debt capital from fools in an over exuberant marketplace. I'm don't think, with growing revenues, in a contracting environment, that you can put Sirius Xm in the group.

On Feb 08 08:56 AM Alan Brochstein wrote:

> The companies will survive for the most part, but the owners will
> change. As far as people losing their jobs, they will, as these
> companies will shrink in general. Let's hope that the new owners
> insist on building more sustainable business models that rely less
> upon massive debt...