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Stock Lobster

10/24/06 12:52 PM

#7026 RE: McBeanburger #7022

I try never to bash someone else's stock in public, because no matter how terrible a stock may look to me, it is still someone else's investment and they don't need me messing with that.

If it turns out I'm wrong about my concerns, I may have spooked people into selling, who will then resent me when the stock continues to run. If I'm right about my concerns, people will still be angry and upset with me. You are never thanked for mentioning bad news. I have learned this through bitter experience.

It's a losing proposition, I have learned, to openly disclose your negative feelings about a stock. Die-hard longs won't listen anyway, and you'll earn yourself the label of "basher" with nothing to gain from it.

You can't save anybody on these boards. If somebody PMs me, it's a different story, and I'll gladly share my concerns. But in public, I will simply emphasize the positive about the stocks I like.

If we're not discussing a popular stock, that may be a signal..."damning with faint praise", and so forth. The most I'll do is ignore stocks I don't like, and merely focus on the ones I do.

However, with CSHD/FHAL, the CEO's violations of SEC regulations were so blatant, I tried to gently call people's attention to them, and the accompanying risks. There are actually only three GENUINE total risks to capital on these stocks: bankruptcy, reverse splits, and an SEC halt to trading.

Most of these risks will catch the ignorant, naive and newbies by surprise. But upon closer inspection, the signs are usually there for all to see, long before the possible risk becomes actual reality.

One must remain alert at all times for possible risks, and take action long before the news is posted for all to see.