Craig,
It's probably best not to analyze the failure of Ancor but perhaps the criteria you have used for investing. I could mention the obvious ones you already know about like diversifying outside of tech stocks (always) and only invest a portion of your portfolio in high risk development stage companies, and avoid companies that went thru convertible offerings, etc
I have studied many companies and industries thru the years and I can tell you that there are variables you may not have considered in your investments. One "outside" variable you may want to consider in future investments is where the company is located. You probably are aware that Minneapolis has a highly educated work force and indeed the suburbs where Ancor is located (and the job area it pulls from) has one of the highest percentage of college educated individuals in the U.S. However, I am seeing a pattern (repeated over and over again) in the Minnesota area. Some industries like networking and software move too fast for the type of personalities that live and work here. I have met with many senior level executives of Minneapolis small cap companies (hardware, software, medical device, etc.) and the one trait they all have in common is that they lack the fire in the belly, the "get it done NOW" creed, the "push, push, push, personalities" that east and west coast companies have (for better or worse).
I know there are examples like ADCT that contradict what I'm saying but ADCT, if I recall, has west coast development operations. There appears to be a lack of competitive aggressiveness in Minnesota hence the proliferation of companies there surviving in the "gentlemenly" competitive world of medical devices.
Well that's my opinion even if it seems far-fetched. I've seen many Minnesota companies implode shortly after facing an aggressive competitor. And I consider the location of a company as a variable in all of my investment decisions. And of course, I learned this lesson the hard way. |
