concept company

Concept Company

A company that has not yet made a profit but has developed a product thought likely to be profitable in the future. For example, a company in the process of developing a revolutionary computer technology may attract investors because they believe the company possibly might become the next Microsoft or Google. On the other hand, value investors tend to stay away from concept companies because they lack the fundamentals to make themselves attractive.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

concept company

A firm that attracts investors more on the basis of the type of business it is in or by the direction in which its management says it is moving than on its current earnings or dividends. For example, a company involved in sophisticated biomedical research that might achieve a major scientific breakthrough and large profits could qualify as a concept company. Concept companies of the 1990s include firms engaged in computer software development, Internet commerce, genetic engineering, and medical technology.
Is "concept" more important overall than assets or income, when one evaluates concept companies?

Concept companies rely on investor psychology rather than fundamentals. If an investor can spot a concept or fad before it actually becomes popular, there is the possibility for gains. Warning: fundamentals become secondary for a concept stock.

Steven Flagg, Senior Vice President—Investments, UBS PaineWebber, Mount Kisco, NY
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The warehouse is let to ITAB, the shop concept company, at a rent of GBP6.24 psf and has an unexpired lease term of 8.3 years.
Clean Energy is essentially a concept company dedicated to the idea that cheap gas could grab a significant share of North America's giant fuel market.
Eva Wallbruch, Business Development and Office Manager at the International Food Concept Company that runs Chili's, said the calendars--each one of them for QR59--would also be on sale at all other branches of the restaurant.
All key decision-makers (investors included), need to fully understand "What will the success look like?" Goals and objectives for the concept company will be translated into a set of "screening criteria" to be used in identifying and assessing possible acquisition candidates.
The deal is described as Red Mango's first international franchise agreement and part of Cinemex's effort to become the leading entertainment and food concept company in Mexico.
Ogdensburg, NY, October 06, 2010 --( The Maggie O'Shea Company-the children's concept company representing the funtime storylines and whimsical artwork of author/illustrator Barbara Briggs Ward announces the release of Ms.
After Harris, she worked at Ohio Electronic Engraving, Concept Company, then as a contractor to many publications and associations.
OOX is a new concept company that is committed to promoting and developing online advertising in the GCC and the Middle-East markets by providing tools, knowledge and education that help increase the adoption, value, effectiveness and ROI of this digital medium.
The executive producer of a show concept company has been further remanded in custody until June 5 by magistrates.
"We are very much a concept company, and I have taken that stance here," said Jan Kjellman, president of IKEA North America.
The warehouse is let to ITAB, the shop concept company, at a rent of GBP 6.24 psf and has an unexpired lease term of 8.3 years.
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