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Re: ValueFinder8 post# 5647

Wednesday, 09/22/2010 10:06:58 PM

Wednesday, September 22, 2010 10:06:58 PM

Post# of 97094
Value, a good investor is always curious and somewhat skeptical. Yes, there are times that some of the questions might not be able to be answered on certain forums, but that certainly doesn’t diminish the value of the question. That’s somewhat like telling a football player that he doesn’t need to lift weights because he only needs to knock people down and tackle.
I’m not a big fan of calling companies and asking questions because I have found from past experience that companies are usually overly optimistic, and rightfully so. In fact, most entrepreneurial people are overly optimistic by their very nature. I imagine if not for optimistic people very few companies would be started.
I think the bigger question surrounds managing expectations. One method to get a handle on this is to go back and read every report and PR that the company has issued. Once you read these you can then see what was planned, projected, expected, etc., and then you can compare this with actual results. This will give you a general idea of the company’s track record and provide you a basis for interpreting new information as it is presented.
I find that is also useful to go back and read old posts from message boards as this will give you an idea of how investor sentiment was influenced by company pronouncements. You might also be surprised to find out that some posters have been promoting a stock for many years. This provides insight into others perspectives and allows you to properly filter the posts that are made.
All IMO