"Scambusters"
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To: +kenneth shopsin (52 )
From: +kgreen Monday, Mar 23 1998 12:01AM EST
Reply # of 53
OK. I have a few offers.
NETZ. This one got hyped in one heck of a pump-n-dump. I decided to perform DD after making some quick profits to see if I wanted to hold it long. Like an onion.. lots of layers and unpeeling them made me want to cry. About four name changes in even fewer years. Despicable management. The one decent company NETZ picked up lost all of its key management within weeks. The irony: NETZ still has a nice following.. fans who completedly ignore all of the warning signs (shells with frequent name changes, management with questionable history, loss of good management, no earnings). My attitude: why put your money into this company now? If it is a good company, it will prove itself and then you can invest.
Some thoughts:
If a company has gone through more than one name change, there must be a reason. Most companies want name recognition. Frequent changes imply a company has something it wants to get away from.
If a company promises to post financial information, give it two shots at making the date(s) it sets. If it misses both times, pass on it until it proves itself.
If a corporation tells you it has a deal/contract with another company, get the company's number.. then call up and ask if the information is true. Confirm all info. Period.
If you are questioning a manager or IR person with a company, ask permission to record the call. If it is denied, pass on the company.
Turnarounds are great, but you don't have to get it on the ground floor.
Kath |
