Livewire Ergogenics Inc (LVVV)

[Jason Coombs]

Investing in a company because it has a good product is a mistake. Products are easy, execution is hard.

In my work as an expert witness I have seen many times that products can appear valuable, and even attract customers, but in the hands of the wrong management team all value can slip through investors' fingers like so much sand... If there is value, making it accrue for the benefit of shareholders and achieving massive scale takes much more than a good product, it requires some empire building and market positioning to battle every barrier and make it across other people's defensive moats in order to enter and thrive in territory that is controlled at the onset by the competition and their business partners. Having something valuable to sell is nearly meaningless when you can't or don't bring it direct to consumers, and just like in the entertainment and software industries it doesn't help if your market is theoretically accessible at no cost directly, such as via the Internet, because if you can market directly to everyone in the world at no cost then so can everyone else, drowning your product in noise.

To invest in a product, buy a patent. If you buy shares, be prepared to help the company's management overcome impossible odds by giving the company your time, your social network, and your best ideas. Without this sort of help spreading the word and lowering barriers to market acceptance or capital formation there is little chance of meaningful success unless some competitor buys your lottery ticket from you to buy out the competition as the competitor does what you and the management team failed to do: win.

Regards,

Jason Coombs
[e-mail]