Broken Promises
Written by Michelle DeMeritt
Published by OTCBB News Network - www.OTCBBNN.com
Investors constantly write questioning why their stock is not trading at higher prices. While each stock has a different story, basically it all comes down to trust. Investors get burned everyday in the broader markets as well as in the OTCBB. But in the OTCBB, it is more common that the companies themselves light the flame.
When the most widely followed companies break promises and do not deliver, investors are left holding the bag. There is an inherent overflow of that distrust. Investors place their money, hope, and most importantly, trust in companies. When a company turns around and shatters investors' confidence - it does not go unnoticed by all participants in the venue.
It is especially difficult in the OTCBB, since the companies themselves deliver the only source of information, besides the role OTCBB News Network is establishing, of course. Even when legitimate concerns are raised by posters on message boards, not only do fellow posters label them 'bashers', but the companies do as well.
It is well known in the broader markets, that the management of a company is the key component. Look at GE, with Jack Welch, Microsoft, with Bill Gates, or even the credit market as a whole, with Alan Greenspan. When these key people consider leaving, there is pandemonium, especially if unexpected or not managed with the utmost precision. It makes sense so much value is placed on these people - they are the company.
However, in the OTCBB, management is rarely considered a significant factor. As a matter of fact, it usually plays a very minor role in investors' decisions. Even though, it is management that is accountable to the shareholder for the better or the worse. It is the CEO who is lighting that torch to burn the investor or build a foundation for the company and the shareholder.
When investors see companies whose management is promising the world in each and every press release (sometimes even posting on the message boards), but then only promote their personal agenda, without regard for the shareholder, it takes a toll on the entire OTCBB. Unfortunately, we have experienced this numerous times lately.
The entire OTCBB suffers as a result of these betrayals. It leaves investors out of the market for good, others not wanting to be burned again - will not "hold" stocks, and the majority are left not believing press releases from other companies. Buyers flee the market, volume dries up, and stocks tank. It is unfortunate because the majority of the companies are not deceiving investors.
In the end, the old cliché is accurate - if it sounds to good to be true, it usually is! Do not let company's promises be the only deciding factor in your investment decisions. Perform your own analysis; look at the company's history and the management's track record. And above all, do not let the few unscrupulous companies set the standard for the entire OTCBB.
AI
