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Gold/Mining/Energy : BPI Industries Ltd (BPR-VSE)

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To: Ron Struthers who wrote (341)6/17/2001 9:09:51 AM
From: Ed Ajootian  Read Replies (2) of 355
 
Ron,

Thanks for the comments. Here's some constructive criticism on your newsletter, using BPR as an example.

You get into a lot of stocks real early, before any good definitive news has come out. This allows you (and those readers that follow you) to buy in for such low prices. But then when the good news starts coming out, and the stock runs up appropriately, you are then just oriented to advising what to do for those that had bought in earlier.

I would bet that a significant number of your readers do not buy into a stock when you first recommend it. These folks may well be very interested in the stock but for some reason did not feel they had enough positive feelings about the company to pull the trigger. I believe you are doing these folks a disservice by not letting them know about good opportunities to buy a stock that may present themselves even well after you have first initiated coverage.

I believe BPR is in just such a situation now. I bet a lot of folks did not buy on your initial re-initiation of coverage on the company. As you know, many folks had a sour taste in their mouth from the prior BPR experience. But now they have dramatically improved the structure of their deal and the stock is obviously worth substantially more than the price at which it last traded ($3.05).

So for you to recount these events and then just talk about when and where you would sell some of your position, leaves all those poor slobs that had not pulled the trigger yet, to think for themselves as to whether this is a good time to buy BPR or not. Most would conclude, since you are only talking about selling it, that it is not a good time to buy. But what happens if it opens and does not run up? Wouldn't you agree that it would be a screaming buy at $3, even $3.50, right now? If so then I believe you should be letting your readers know that so they can jump in now if the opportunity presents itself.
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