Copy of Letter to Louis Corrigan at the Motley Fool
<< Dear Louis,
First of all, let me say that I always enjoy your work. Especially the pieces that have slammed me. I always find your heavy-handed pious tone amusing.
I must admit that your column tonight had me a little confused. "Opportunistic"? "Doesn't necessarily believe his own arguments?" "Tulipmania?" "Will gladly play a "mania" for a fast profit if he thinks he can?" "Spouting intelligent-sounding nonsense?" "Create some publicity?" "Dubious arguments?" "The Internet allows a public forum for folks who might otherwise never merit one?"
I wasn't sure whether your column was really about me and EGGS or about the court-jester-cap-wearing, website-peddling, book-peddling, radio show-peddling, dogs-of-the Dow-stealing, PEG-worshipping, Warren-Buffet-wannabe Gardners and their absurd "buy and hold forever" picks of IOM and AMZN. Oops - there I go calling people hypocrites again!
Since the brothers are your employer I must assume you really intended all those comments for me. So let me address a few of your points.
First of all, I suppose only a fool would consider the word "trader" to be a pejorative term. Given your employers' disastrous advice regarding KLAC, IOM, COMS, and ATCT, (how many others did I forget?) one would think you guys would lighten up on that misguided dogma. But I suppose that might hurt book sales. Thank goodness for those Beardstown Ladies, huh?
Regarding my "Strong Buy" recommendation and reiteration on KTEL: both of those were excellent calls. The stock more than tripled or doubled, respectively, from the time they were made. I stand by my relative valuation argument. Why shouldn't a company with a long track record in direct marketing be assigned a similar multiple to that of a company that was started in a garage by two kids a few years ago? Because they don't have an investment banker spinning their story?
Regarding Advanced Health: I got bagged. So did the rest of the Street. Sorry, but I am not privy to material inside information. As for an update, I am considering one.
Regarding my purchase of EGGS July 15 call options: I sold them two days before initiating coverage.
Regarding my comment of "Nahh, that would be wrong". It was sarcasm. The context of that comment was that many of my detractors seem to truly believe I have no right to express my opinions. The last time I checked the First Amendment had not yet been repealed.
Regarding "Tulipmania": is AMZN worth 15X forward estimates? If not, why haven't the Gardners put out a "Sell"? (Yes, I read your sycophantic column on this topic.)
Regarding "gullible investors" and hype: Hey, I told people to sell IOMG at $55 in May of 1996. It's right there in the Fool archives. Where were you?
Louis Riley
Principal
Riley Capital Research >>
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