Seabuiscuit. Great post
I'm sending your post to a new investor in CKYS. The other must read for Pink investors is this one from the sad SLJB site.
Posted by: robotrader
In reply to: patrosz who wrote msg# 200583 Date:12/2/2006 11:26:47 AM
Post #of 200646
A Seinfeld analogy. Do you remember the episode where Kramer creates Kramerica the company and takes in an NYU business student as an intern? Kramer tells the kid they are going to solve the world's energy problems by designing a bladder for oil tankers that will prevent oil spills. They test this bladder by filling a balloon with oil and dropping it from the 5th floor of a building. The moment the balloon explodes on impact, Kramer, without almost so much as a blink, shifts the direction of the "company" to the food industry in a quest to create a product that mixes ketchup and mustard.
I thought when I saw this episode yesterday that this Kramerica would have made a great pinky penny stock. You could PR bullshit about how the market potential is in the billions, how you are an environmentally conscious company, how you're collaboarting with New York University, yadda yadda yadda. You could make it sound like a real sweet investment. Then when it all goes to hell you could shift forcus to the multi billion dollar food industry, change the ticker, wash, rinse, repeat.
When you read penny stock PRs always try to picture PV or Kramer as the CEO. Always assume every PR is an outright lie or gross exaggeration. Demand proof by cross referencing and asking tough questions. That way, if your company checks out, you can confidently average down when times are tough due to market or sector selloffs/pullbacks.
I am curious to see whether Domain's Berlin company turns out to be our Vandalay Industries and whether SLJB turns out to be of little more value than Kramerica -- Kramerica might actually be worth more as it has no debt and we have no proof that SLJB is profitable -- we have promises but no balance sheet. We have "Black Pete" instead of "Slippery Pete."
It's amazing how watching a few hundred hours of Seinfeld re-runs can make you a better investor and help you make more prudent decisions.
JMHO.
AI
