Thursday, March 23, 2006 12:34:47 PM
1) Predict what will happen in advance, such as the price of oil will go to $100 a barrel
2) Discover easily available public information on why a stock is undervalued or overvalued, since you can go either long or short
3) Research difficult to find public information on a stock such as the experience a customer may have had with the company's product. Or talking to investor relations or management about things they can talk about without violating securities laws. Or hiring a private investigator to dig up information on management or something else you need to know.
4) Become privy to insider information
Dr. Bill I have no doubt that you and 10bagger have done a lot of #2. However I don't feel you have done near enough of #3 to understand why an investor would sink a small fortune into GFCI.
Just because Jim Dial was public relations for Litfiber doesn't make him a scammer. Correlation is not causality. I would suggest he knew Litfiber to be worthless which is why he knew he could trade it for another Pink Sheet with little value.
My buying VPHM at $4.25 and selling it at $19+ was #2. Reading what Bobwins tells us the CEO of Diaz Resources is saying about oil production is #3. But #3 information is not always suitable for posting on message boards or available from message boards.
Buying a gold company on the premise gold will go from $300 to $500 an ounce is #1.
I just don't think you can be successful investing heavily into a pink sheet or two based on #1 or #2 in most cases. However you might buy a basket of pink sheets based on #1 and #2.
So the lesson for your investing book Dr. Bill is that if you are going to bet heavily on a pink sheet company or in some cases a small cap company, get ready to sink some time into #3. It is a very time consuming process not usually suited to larger investors who would just be better off buying larger companies and doing #1 and #2, like mutual funds do.
I know you have done some #3 type research in the past. Unfortunately part of #3 might be developing a positive relationship with other investors and management. At least from the colors you are displaying on this board, I don't see how you can possibly be successful doing that. In fact you are looking more and more like the pawn of a hedge fund who is shorting GFCI.
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