Zeev: Of course the SEC documents are worth examining. The argument here seems to be that these are standard disclaimers that apply to any investment.
This is about the most foolish argument I have heard on SI. All you have to do to realize these are not standard disclaimers common to any investment is to compare the filings for different companies.
For example, try ULBI's recent annual report. It is not brimming with warnings about the risks of dilution of the financing situation, ability to continue as a going concern, etc.
Any investment has risk. Some types of investments (e.g. stocks) are inherantly riskier than others (government bonds). Some stocks (MSFT) are investments (ongoing earnings with a reasonable probability those earnings will continue, and even increase) in the future. Other stocks (VLNC) are speculations in that investors are speculating on the successful outcome on a whole range of issues (e.g. ability to raise operating funds before products are sold, ability to avoid excessive dilution, ability to mass produce the product, ability to sell the product, ability to earn a profit, ability to compete successfully) etc. These risks are discussed in the SEC filings, and it is up to each investor to evaluate them and make a decision.
If some want to totally discount what SEC filings say, they obviously can chose to do so. I would not recommend it. And if they think they are convincing others this philosophy makes sense, they must think people are stupid. |
