When is a company with strong operating revenues and competent management considered a good investment?

A company is considered a good investment when its intrinsic value is higher than its current stock price, as this indicates that the stock is undervalued in the market. Intrinsic value is the true worth of a company based on its fundamentals, including earnings potential, risk factors, and market conditions. When investors identify a discrepancy where the intrinsic value exceeds the current market price, they see an opportunity to purchase shares at a discount. This situation often signals potential for future appreciation in stock value, thereby providing an attractive investment opportunity.

In this context, a company with strong operating revenues suggests that it is generating sufficient income from its core business activities, and competent management implies it is being run efficiently and effectively. Together, these traits enhance the feasibility of future growth, making the stock even more appealing when it's priced lower than its intrinsic value.