This is definitely worth a double post while people are out and about on this glorious Sunday! Brilliant summation and suppostion Seabiscuit!
Posted by: seabiscuit Date: Sunday, July 26, 2009 12:55:14 AM
In reply to: None Post # of 26998
For those with cardiac palpitations and nervous twitches like Inspector Clouseau over the accuracy of due diligence for EXPH , a now reporting OTC stock , let's examine some incontrovertible facts before the uncertain investors grab that first 20 % whoop-de-doo profit .
Wachovia , Southern Community Bank , and Crestmark Bank did their own DD on Expo Holdings . In normal times Banks required John-Q borrowers to provide employment histories , salary verifications , debt load ratios , payment history on other loans , and F.I.C.O. scores of credit worthiness . In dire times such as the current credit meltdown around the world Banks would intensify their due diligence to ensure the borrower has 100 % ability to pay back the loans on time . Any Bank's failure to DD their borrowers has dire consequences on their own respective loan loss ratios resulting in FDIC and OCC Corrective Actions , possible Bank seizure , and possible bankruptcy . They really don't want to reposses Expo Holdings raw materials and sell them for peanuts . The above should make sense even to a billiard ball IQ .
Would any of the three Banks take un-necessary risks with Expo Holdings ? ( insert DUH )
Would the Banks' collective DD be better than some public investors who require huge doses of Imodium-D because EXPH is a Pink Sheet stock ? ( insert double DUH )
OK , so that's the credit worthiness DD that is bullet-proof .
*** NOTE : THEIR DD , not mine or anyone else's .
What about Lowes and Stanley Tool's DD of Expo Holdings ?
The nervous nellies had better insert a double duty cork because a $30 billion dollar Lowes and a $739 million Stanley Tool didn't get to become Industry Leaders by dealing with wannabe companies that can't or won't deliver any and all contracted material and finished product . Nope ....they don't deal with loosers ( misspelled just because I wanted to , LOL ) .
Industry Leader companies like Lowes and Stanley Tool have corporate governances that safeguard against making colossal mistakes ....they have auditor internal controls ....they have Boards of Directors who must approve CEO decisions ....they have Articles of Incorporation that ensure corporate internal controls are adhered to in ALL instances ....they have shareholders who beat share prices and market caps to a pulp when major mistakes are carelessly made .
Would Lowes and Stanley Tool take such risks with Expo Holdings ? Um....would Lowes' and Stanley Tool's DD of Expo Holdings be a smidge better than ALL public Pink Sheet investors combined ?
Retail investors can do the Clint Eastwood thingy and ask themselves if they feel lucky with EXPH being a Pink Sheet stock . Lowes , Stanley Tool , Home Depot , Newell-Rubbermaid , Bosch Tool , Kronotex U.S.A. , Black & Decker , Westinghouse , Wachovia / S.Community and Crestmark Banks .....DON'T BET ON BEING LUCKY .....they execute on being SMART and exhaustively diligent .
In the inimitable but paraphrased words of Clint ....do ya feel lucky or do ya feel smart ?
OH ....and it all doesn't have to culminate in a rocket ship PPS on tuesday . Good companies ultimately rise to a fair , sustainable valuation on MERIT . Worth the wait for the Market to get SMART on EXPH .
Renee
To bite the worm of incite is to bite the HOOK of the antagonist . They win .
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