Just A Reminder
Excerpts from Board Users & Visitors: READ THIS POST FIRST
Posted by: TradeSwapper
In reply to: None
Date:2/12/2007 8:55:01 AM
Post #of 30272
"In the end, we will rise or fall based on the quality of the company's execution of their business plan. I do believe a personally vested shareholder base can often be a critical factor in a start-up company's success, yet I will not encourage irrational exuberance and outlandish expectations. I will advocate that shareholders do take an active interest in their company and even perhaps help their investment by concretely helping the company with constructive feedback. I've suggested the company solicit the trading community's input and I hope they act on this.
The reason I believe that may be applicable in this case in particular is the situation of INXR may be relatively unique for a stock at these levels. Essentially, this is a company whose investors may actually become the very same users of their products. If the company does the following 3 things:
1. Show the microcap investment community they are a real and legit enterprise (as all on this board know this is absolutely critical and could be equated to getting to first base)
2. Show all of us they are going to be aligned with shareholder interests (which ultimately requires a steady approach to share structure management, compensation and shareholder communications)
3. AND MOST IMPORTANT (of course), the products work and they can bring them to market, support them and prove they are going to be around and grow their business.
And those 3 factors I have discussed extensively with the company now for the following very simple reason:
If you think they are legit then you may become their customer. Who is going to commit to learning and paying for a platform if you think the company is a fly by night scam? You wouldn't. So square one for me was - are you legit? Then I proceeded to, OK, now waddya got?
Therefore, the business success of the company is uniquely married to the success of their stock because if we think they are legit and then use their product it is a natural synergy. I want that legitimacy to be real and not one of manufactured perception. Any advice I have offered to the company is along those lines, i.e. do the right thing (NOT fake the right thing), both as a business and as a stock with shareholders whose rights must be considered.
If you get a blend of all three factors, then you get a strong shareholder base willing to lock down their positions and hold for better valuations and share prices.
Please note that prior to saying I would see the company because I had to go to NYC anyway, I had mostly concentrated my posts on basically educating many on what to look for in the trading of a stock such as this so you could understand the price action and build your positions accordingly if you wanted to and hopefully do so without overpaying. I did not hide that I believe in the importance of the simple fact of supply and demand with any stock being tightly held by shareholders whether it is $100 a share or a tenth of a cent.
The markets reward strong hands who hold the correct stock. Simple logic shows, often in retrospect, that a tight float sometimes results in a higher valuation if demand then continues to exceed supply. But we should not know what we each hold and keep it that way. It leaves you a little more in the dark about calculating supply and demand, but it also avoids accusations and problems down the line. The belief is valid, but rigging the numbers is not what I want this board to be about, so lets keep it clean everybody.
You can legitimately look at whatever numbers can be calculated by whatever insider positions are disclosed and assuming the float to be a certain number, looking at the money flow and volume over a period of time on the charts and making an educated guess.
Sure, at this point you could validly guess the float is tight and it is OK to say so. That is not a conclusion that could or should be censored. We just want to avoid some mistakes seen in other situations like share counting tallies on a public board. I disclosed I was told the two principals of INXR said to me they have 250M shares each which leaves us all on roughly equal footing in terms of current knowledge of the float.
Doing due diligence by visiting a company or meeting with its principals is often deeply instructive. I am not a day trader, but either invest or swing trade. I sometimes offer free, unpaid for advice to companies whom I believe can overcome mistakes and bring out a greater value that is hidden by a depressed share price. That advice would be along the lines of observing and strengthening shareholder rights, proper targeting of market niches and generally trying to convince management that aligning themselves with us often results in good fortune for their company and their stock.
We are all making a bet that our positions here are going to appreciate as the value of the company is unlocked by successive developments and accomplishments by management. I would not presently buy this stock at a dollar of course, so it is relative to the share price. One must find situations at lower values that can then rise to new levels. This seeking out of distressed stocks hiding small, but promising companies is a classic investment technique and it can be very rewarding. If I am right and can offer some small tips that point them more squarely on the path to success, I feel rewarded personally besides doing better financially.
We are here to make money and I'd like to see it done respectfully and avoid some of the behavioral excesses found on some other boards of stocks that run hard as I think INXR may be capable of doing. Let's be professional, try to make useful contributions and we will see together if INXR will be a rewarding investment or trade however you choose to phrase your participation in this stock. All the best
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