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Microcap & Penny Stocks : U.S. Microbics {BUGS} - Environmental Augmentation

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To: GY who wrote (16)6/10/1998 7:30:00 PM
From: Frank Buck  Read Replies (2) of 345
 
GY,

It seems that every publicly traded stock has its own wonderful little story. Their shared plight and mantra are all comparable..... "If only the investment world knew of our existence" . They all compete for a finite amount of investment dollars from retail investors who are willing to risk that they are able to pick the next diamond in the rough. This risk reward ratio is currently at some lofty levels and the allure of returns had better be great lest investors turn towards the like of AOL, DELL, and such.

It also seems like there are no shortage of scams out there.... and many potential investors are naturally gun-shy from having been kicked in the teeth too many times before. Naturally an investor needs to hear the story first and decide if it is credible. A fully reporting Company has a better chance than a non-reporting.... so U.S. Microbics is off to a good head start in that respect. But what then?

Mass slamming and spamming are analogous to cold calling in my book. Somewhat minimally effective only in the short term. Yet what is needed is a larger public investment awareness and some new blood if a Company ever has aspirations of achieving and sustaining a higher market cap.... which also simultaneously increases the value of its corporate currency.

Marketing research shows us that dollar for dollar the best source for new orders comes from "existing previously satisfied customers". If we are to translate that to the equity market... the "old customers" are the "old and existing shareholder base". Referrals to friends, family and associates are usually made when an individual is confident that the referral will not blow up in his or her face. Price volatility (or the lack ther-of) is a good measure of assurance that a stock can be safely touted amongst peers. Nothing worse than telling old Uncle Bill at the family reunion that XYZZ is a good buy at $2.25... and then watch it fall to $0.875 a week after Uncle Bill buys it.

I like the automatic Email notification system that BUGS has adopted in disseminating news. Shareholders need to be reminded on a somewhat regular basis of why they should continue to support and stay in one investment vehicle over another. As you know.... money will go where money is treated best and unless shareholders are kept abreast of Company activities they get nervous. Obviously with the advent of the PC and online investing the press releases are spewed about like pollen in the springtime. Yet noteworthy news is different than hype.... and I am still waiting for this Email notifier to bring me my first piece of news.

Investors today are shrewd and a certain amount of Company dollars must be allocated to sustaining old ones and obtaining new ones. Certain glossy covered investor publications are expensive advertising mediums but ensure a look over by many astute and savvy investors. One that comes to mind would be Individual Investor magazine. A relatively high circulation number promises a decent return from Company advertisement dollar. Another IR strategy is an official and dedicated IR person who posts answers to shareholder questions on threads such as this one. I have seen this employed by one medical equipment manufacturer... and if nothing else it helps assuage fears in tumultuous times. It also Yells out loud that the Company is shareholder driven. A must priority if a Company is to amount to anything.

From a shareholder perspective the only thing that matters is maintaining and advancing ones original investment. If the Company can do that IR work should be easier as the existing shareholder base will help the IR relations activity by promoting the Company in their own way. I personally don't think that the conversing of a few individuals on a thread such as this has the ability to markedly increase a share price.... but one had better believe that a few openly negative shareholders posting on a thread such as this can preclude many perspective investors from risking capital in the same Company. Shareholders and perspective shareholders wholeheartedly believe the negative postings and take the positive posts with a grain of salt... unless accompanied by a steady and sustained shareprice.

Management should realize that an Internet Thread discussion group (such as this) has about 15 or so readers for every active poster. SI has previously published the stats on this. So... if you take into perspective the non-posting capabilities of non-SI subscribers and figure there are perhaps three BUGS posters.... that converts to at least 45 other BUGS shareholders that are reading this very thread. Again remember the best source of new blood is from referrals from old blood so an active interest in this SI thread by BUGS management and an occasional Q & A period here would be beneficial in clueing shareholders and lurkers into what to expect going forward. Groundbreaking pioneering IR work, as not many Companies are doing it... but it does have SEC blessings.... so let's see how avante garde Mr. Brehm is and if he accepts the invitation.
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