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Strategies & Market Trends : Due Diligence - How to Investigate a Stock

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To: EL KABONG!!! who wrote (190)4/20/1999 12:03:00 AM
From: EL KABONG!!!  Read Replies (3) of 752
 
The Education of Danny

Chapter #1...

Yesterday I posted the introduction for this new short story (actually a drama playing out now on the ABFG thread). See:

exchange2000.com

Today I will draw heavily upon the following excerpt from this ABFG post:

exchange2000.com

Mr. Kelner went on to say....Daniel Miller had been posting inaccurate information about ABFG and on several occasions Kelly had tried to e-mail him, but Mr. Miller had not responded.

Dan has been warned many times by many posters on the ABFG thread about using telephone calls to the company as the basis for his DD. My post on this thread has been referenced twice on the ABFG thread. See:

exchange2000.com

From the above post, I'll reference the following text:

When you call the BB company you're going to hear the story the company wants you to hear. Almost always, that information is available elsewhere, in press releases or on the threads. A company insider isn't going to give you the inside scoop that hasn't already been carefully considered. If an IR/PR guy or an insider does give you what seems to be relevant information, ask yourself why this isn't public information already. Do you really think that they would give you inside information, even in error? If you post it, and it later turns out to be wrong, the company will merely claim it misunderstood you or you misunderstood their answers. Telephone calls are neither reliable or verifiable. And that word is the key. Verifiable... All information from a BB company should be independently verifiable or you should disregard it, no matter how favorable to the company's story.

Well, Dan the "company response" was predictable and you were forewarned. In the unlikely event you wander over here to actually discover the DD process, maybe there's something in this post that will will actually light up your light, if you catch my drift...

More tomorrow night...

KJC
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