II. Consider the Products/Services/Affiliates
Alright, so now I have made a decision to hunt flamingo's only. Assuming I have found a stock and it's a flamingo, what can I do next to make sure this is not going to be a part of my flock(I have found it much more helpful to assume a stock is not the next best thing. My curiosity will push me forward anyway. This is better than assuming it is the next great stock, and therefore rushing to a purchase before finishing my DD.)? First thing I do is go to pinksheets.com, enter the ticker, and click on the "Co. Info" tab from the dropdown arrow. That usually gives me a short "Business Description" and more importantly, a website link....that's exactly where I want to to go...to the website(If there is no website link then click on the "NEWS" tab and pick the first PR. Scan down the PR and usually you will find a link. If that doesn't work you could try a search engine. If that doesn't work then I would just scratch them off the list as too difficult.).
Now, at the website, what is burning a hole in my mind at the time is this question.."Can I live with the product/service/affiliates?" To me it demands to be answered..must be answered before I can or need go any farther. This question, IMVHO, is both personal and strategical. First, on a personal level, I am just not going to be willing to invest any time or money in a company that has a product or service that is against my system of beliefs. Some people say that money and investing don't mix...to me they must, since I know that "the love of money is the root of all Evil"....translated to me that means not to sell out to some online smut shop, because I think they are going to have excellent revenues next quarter, and I'm planning to up my tithe accordingly...for me, that attitude just will not do. Also, and then I will shut-up on this subject, GOD must be in charge of investments/companies or he simply is not GOD...the name "GOD" itself declares total control of all things. So, if I can't stand the product then I am out...that simple...no need to go any farther.
Secondly, from a strategical standpoint, I let the product give me a glimpse of management. If someone would be willing to be CEO, of "SmutCanada.com", then do I really think they won't sell shares?
Also, I know that since we are dealing in micro's, all we really need is one big fish to come along and decide he wants to buy up the float to have a great ride. I would hate to think that a fat cat was really looking for a good place to sink some money, but would not because the product was against his religion. I just believe that you can put a shady investor in a good product, but you can't put an honest investor in a shady product.
Alright, assuming the product didn't make me ralph, I like to really check out my first impression of the website. How does it look? How does it function? Do all the links work? How up to date is the info on it? I know this sounds a bit silly, but I don't want anything to hinder the flow of investors to the stock. First impressions are huge(IMVHO, one of the main reasons why CMBV has kicked IPMG's butt to this point is the difference in the websites.), and to me, going to the website, is the next best thing to walking in companies door.
Ok, so if the website looks good to great, then I want to think a little bit more about the product. I may read the website a bit to determine a little more about the scope of operations. I want to know if they are trying to spread across the world, continent, U.S., home state, home city, or block. I must use my imagination here to help me decide the scope of the product. How far reaching are the implications? How much revenues do I think they can make? I like to call this the "Wow factor". The bigger the "WOW" the better. IMVHO, this is one reason why HISC and has done so well(another one with a huge "Wow" is SSTY...think China and beyond...this "Wow" has helped it move up despite several "red flags"). I don't usually drop a company this point in the DD because their products just seemed too lame...I will, however, take note of an extremely small "Wow" factor, and then, therefore, need to find a really small share structure.
Thoughts, anyone?
GB-ND
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