The dot com bubble burst, and it gave a lot of lessons to investors on how to invest in stocks. Some of those lessons are still yet to be learned. Let’s analyze this company called Support.com as an example. Remember to get investment advice from a registered professional before making any investing decisions.

This company does IT services for consumers and small businesses. That’s a great market that is growing since more and more people are using computers these days. It’s also a good business because small businesses can’t afford to have their own IT support desk staff.

The concept itself is really good, but executing this as a business is another story. The big glaring issue is that they are not making any money. They have been in the red for the last few years. In addition, their revenues have been erratic. It’s pretty much stayed flat for the past few years as well. They are narrowing their net profit margins, but it is still negative. This stock gained 18% yesterday, but I don’t know if that will be sustained.