Chuck,
Currently my best idea on DD is to go to the companies web page and see if I like it and thats not what I need.
There are two stories to every BB company. The first story is the company's story. You get it by going to their website, reading their press releases and listening to the touts (professional or otherwise) on the company's thread(s) here on SI and other chat boards. You'll rarely hear anything more than promises and plans (and in the event of missed deadlines, excuses). This is the story the company wants you to know. Everything is presented in the best possible light; best foot forward sort of thing. The second story is the one you must dig up for yourself. Forget whatever products or services the BB company is offering. The whole key is the management and executives. Investigate them thoroughly. No source is to be overlooked. You want a complete history of the company and everyone they've ever associated with. Specifically, you're looking for dirt. And in many instances you'll find it. The SEC is a good place to start. Newspapers specific to the region where the company is located are another good source. A full search of the internet (using multiple search engines, the more the better), the internic listings, the Secretary of State where the company is incorporated, the NASD site and on and on and on ad infinitum. Experience also helps. You'll learn to recognize that scams seem to be associated more with certain cities than other. Specifically, Boca Raton, FL & Salt Lake City, UT & Palm Springs/Coachella Valley, CA & Houston, TX & Las Vegas, NV and a small number of other cities show up time and time again. (I guess that scammers like the warm weather resort areas...)
You said in your post that the stock I mentioned was of "highly dubious value" how can you tell?
Well, to start with, it's out of Boca Raton, FL. I've yet to see a good, honest, clean BB company from that area.
Let's look for touts:
December 15, 1997
bredex.de
February 24, 1998 (Press Release)
pathfinder.com
March 9, 1998
www4.techstocks.com
March 24, 1998 (apparently the stock price collapsed)
Message 3825310
May 26, 1998 (OOH! A "positive" post)
www3.techstocks.com
Of course, all this was over the last year and a half. Management, having proven themselves highly uh... "successful" at this venture, now decides that they have the expertise to acquire and run an internet company. Yeah, right... And that's why I've decided this company is a highly dubious investment at absolute best. Note that I haven't even bothered to check into the management and executives' background. I already have enough for me to know that this stock is not going into my portfolio anytime ever...
KJC |
