Here is another example: BFT. Some weeks ago when BFT had fallen to about 24 from 37, Dessauer devoted a whole hotline to it. He admitted that the short sellers were on it, spreading vicious rumors, driving down the price, and that we should step up to the plate and buy BFT because it had a record month in July and August. It sounded like he was really pleading with you, begging you, to buy that stock. And just recently he admitted that Dessauer/McIntire Asset Management has a huge position in BFT. Hmmmm. Interesting. Was he fighting the short-sellers by buttressing his subscribers up against their assault? I remember at the time that I knew I wasn't going to buy BFT at 24 because a lot of stocks, including good companies, were falling to at or about their 52 week lows, and for BFT that would have been 12. Besides, Dessauer has always been rather vague about BFT; Record month? Big deal. He doesn't give us the P/E, for instance. As it turned out, BFT fell to 14 before stabilizing.
One of two things seems to be true: Either, Dessauer has trouble realizing that a stock that is falling may fall further and that the wise course is to wait for signs that a bottom has been reached before buying, rather than try to catch a falling knife, OR Dessauer encourages buying by his subscribers during a free fall to actively attempt to create demand for the stock and halt a further decline. Which do you think? |
