<edited>Hi ad - FWIW, if it were not for Mr Pontikes's efforts, who was instrumental in getting CDO DR on the map, CDO could likely to remain a mainframe leasing outfit. In other words, the company could ve been history! So, if one is to look at the evolution of the company, one can see Nicky is not Boy George! Of course, we are talking about counterfactuals, so it will likely to be inconclusive and we probably will continue to choose to see the outcome based on our emotional bias. More important though, even if Mr Pontikes was instrumental on building CDO current core business, there is no guarantee he will have repeat successes. In fact, PRISM seems to be a chink in his armor, so to speak. Was he lucky and now his true self is revealed? Or is this PRISM failure is beyond his control? Were investors like us seduced by fads like DSL and dotcoms? OTOH, don't we all want to discover the next CSCO, or MSFT or whatever? I guess hindsight is 20/20
If you recall, I was very vocal with regard to CNC --- and I hope you did listen to me. With regard to CDO though, while hindsight 20/20, maybe you have strayed from your investment principles. I mean, without trying to make any judgemental implication, what were you thinking when you bought the stock? Btw, I ve never bought MSFT either, but my decision was on moral grounds :)! Back to CDO, its financials may have deterioriated, but AFAIK, historically, they have always been leveraged. So, if that is one of your most important criteria, you ve strayed from it.
While there are many techs with no debt, which I favor too, CDO [its leasing arm] and CNC are into finance. I ve never heard of financial companies with no debt. Obviously, some have better balance sheet than others. I mean, even the mighty Citibank was at one time in the danger of going the way of Ch 11! But people who have stuck with Mr Reed have been rewarded handsomely. I could imagine there were people asking for his head back then
Finally, I really don't know MM. And, actually, even if I don't know his background, I put very little stock in newsletters w/o finding the reasons why. I mean, there is no doubt investors like to get new ideas from various sources. If he recommends something, I like to see his reasonings. If people have mentioned PRISM and Venture a yr ago, the reasons were indeed complying, on a relative basis. Now, the negativity is equally complying, on a relative basis.
I guess I tend to look at myself 1st, when I make a bad mistake --- which is more a norm than an exception --- and try to learn from it. At the present time, I think jury is still out with CDO. One thing I do learn is that backdoor plays are usually a bust!
best, Bosco |
