Ref: Nightly Business News and Adam Smith comments...
Duncan, Would you or Adam Smith like to meet my $1000 challenge in post
#2070? Let's put our money where our mouth is. I also posted this challenge
on AOL 's MF. So far, I haven't hear any responses from the Wises from
Baron's, WSJ, Fortune, or CNBC. I am quite sure that I will not get a response
because they won't be able to meet my challenge, and also they are not
professional enough to admit that they are wrong.
On Adam Smith comments:
1. What does Adam Smith knows about Zip and Jaz, the data storage industry
and trends, world-wide consumer needs/demand, world wide market?
Answer: None.
2. Adam Smith 's individual stock picking record?
Answer: None that I know or hear of. That puts him inferior than the throwing
dart method. Cartlon Lutts of Cabot Market Letter has a track record that's
the envy of the investment world. Guess I will listen to Cabot Letter.
3. Comparing IOMG to the semiconductor industry.
Too absurb for me to even want to response. Showed how shallow Adam
Smith is. It's plain old supply and demand that drove the correction in the
semiconducor industry - supply got way ahead of demand. Anyone who
understands supply and demand would have been able to predict
the correction in chip sector last year or any year. The chip sector
is also fiercely competitive on a world wide basis, and is basically a
commodity industry, subjected to the same rules as commodity goods.
Does Adam Smith knows about Zip and Jaz 's current supply and demand?
Does he know any thing about Zip/Jaz/Ditto competition, or the lack thereof?
Answer: No.
4. IOMG investors don't bother to calculate market value of a company.
Au contraire, we have done that many times and in a much more detailed
manner than the folks like Adam Smith, WSJ, Baron's, etc. in the media.
Problem is most analysts like Adam Smith determine the merits of a stock
of a company based mostly on its past performance - same as driving a
car with the rear-wiew mirror. IOMG and technology investors like myself
ignore the past, look ahead, and scrutiny the future - long before the Wises
like Adam Smith "discover" and understand the real value. By then -- after the
company has matured, price has appreciated 10-20X and settled into a
10-50% rise per year -- the Wises like Adam Smith would say that the
company now is a good investment, proven by "excellent past performance"
and "exceeding expectation" in the past several years. It's time to sell, of course.
5. What axes does Adam Smith have to grind?
Answer: Plenty, as evidenced by the feeding frienzy on IOMG by the media
without bothering to offer any sort of indepth analysis - just pure opinion and
knowing that they can get away with it.
IOMG, AOL MF, and this forum represent a paradigm shift in the investment
world. And the Wises in the media establishment like Adam Smith, Baron's,
WSJ, Fortune, CNBC, etc. have already lost ground and have the most to lose
going forward. They are fighting back like a cornered animal.
6. IOMG and hype.
It's just absurb to link IOMG to real hypes like OCCF, ZE, IDID, Diana corp,
etc. If Adam Smith and other Wises have no axes to grind, they would use
one or more of the hundreds of companies that are truly hype and greatly
over-valued like some mentioned here. Comparing OCCF with 1995 revenue
of 1.5 mils (and probably not much higher in 1996) vs. IOMG 's estimated
revenue of 1.5 billions and put them in the same class as "hype" is just
simply beyond common sense - about as absurb as comparing the US
goverment vs. Haiti.
I do agree that the current market is a bit dangerous with so many truly hyped
stocks (huge market cap, no sale, no earning, no product, no proven needs,
no proven consumer demand, no huge market, no monopoly position).
Shorterm momemtum traders and speculators are abound and bragging about
their skills. This can cause a significant market crash and is probably the
greatest threat to current IOMG investors. That 's why I would welcome a 10%
market correction to get the market back to a more healthier state. However,
as far as IOMG goes, it will be a winner longterm no matter what happens in
the shorterm. That 's my opinion, and I do put my money where my mouth is.
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