Paul, re diversification:
You know, I try all time to ignore Internet trolls pretending to try to teach us lowly something, and it never seems to work on message boards. I took a crack at it myself.
[discussion is taking place about a pizza press release]
Man: "Maybe they did it show diversification."
Paul: "And to whom is diversification of interest?"
Man: "To VirtraSystems and its shareholders."
Paul: "What about customers?"
Man: "They generally prefer to do business with a company who is able to provide a product in a timely manner, that addresses their needs."
Paul: "I see. So a company who issues a press release in order to show diversification is trying to make an impression on whom?"
Man: "Potential customers in that particular area of interest and investors."
Paul: "I see. And you say that customers prefer a different message, one of specialization?"
Man: "No. I say they prefer a message of a company that is willing to take innovative risks to provide its customers with the most advanced product available. "
Paul: "So what is the cost of trying to impress investors with diversification?"
Man: "There is no cost, there is only benefit in that investors see the commitment the management has to the success of the company. That commitment provides strong support to the stock price which in turn provides strong support from financial institutions that are in a position to advance the long term objective of the company, profitability."
Paul: "I see. And when would the benefit be greater than the cost?"
Man: "Upon announcement of sales from each division, advertising and training."
Paul: "And when would this be the case?"
Man: "According to the chicken entrails and Magic 8 Ball VERY SOON."
Paul: "I see."