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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Jim Bishop who wrote (34636)	3/8/2000 12:20:00 PM
From: Debbie777	Respond to of 150070

INVT- It looks as if Bill Mann from Motley Fools MIGHT do a positive article on INVT the end of the month. Last week he published an article that shredded INVT. He used INVT's old profile from when it was still a shell. The management at INVT contacted their lawyer and Bill Mann. They also sent Mann a package of information to review. Here is a post made this morning from a long time INVT investor that is in constant contact with the company. ragingbull.com TO ALL (ANTHONY5) - I just had a discussion with mgmt and Bill Mann from Montley Fool will be posting a retraction on his article in the next couple weeks and publish a new article shedding a positive light on INVT and their true state of business. This is as a result of a fairly lengthy discussion between INVT mgmt and Bill Mann. GOOD DAY. Motley Fool never recommends OTC stocks..however, INVT is suppose to file for NASDQ by the 31st of March (as stated in their last PR). It might be that Mann will publish this article when he knows that they have filed the paperwork. Could get very interesting...the float is in pretty strong hands...the MMs are very short. Here is a copy of the article Mann published last week: MotleyFool.com - Fool on the Hill Following the Stupid Money By Bill Mann Well, it goes to figure that if there is some smart money out there in the investing universe, there must also be some stupid money. I'll share with you a few examples that have come to our attention here at Fooldom. They may make you laugh, they may cause you to roll your eyes and go "Pfffft!" They may also give you some really good ideas for companies that would make good candidates to short, if only one could short bulletin board stocks. I have come to accept the possibility that companies that are currently unprofitable can in fact be good investments if they show a propensity toward later profitability through superlative growth, operational profitability (before capital reinvestment), and good turn on marketing expenses. (See "Valuation Metrics for Unprofitable Companies," Fool on the Hill, February 16, 2000). The revolution, started by Netscape (now part of America Online), the first unprofitable Internet company to go public and succeed in the stock market, has spawned a change in paradigm in the equity markets. Where previously only well-established, profitable companies gained any support in their equity capital raising efforts, now companies with neither profits nor a clear path to profitability are perfectly reasonable candidates for public offering. But now I see the darker extension of this logic: public companies that have not only failed to make a profit, but have yet to make one red cent in revenues. And the scary thing is that people are bidding them into the stratosphere. This is not necessarily the fault of the companies. I do not believe in accusing them of wrongdoing. Rather, they are simply raising money in a way that is acceptable in the current equity environment. But what is wrong with people? Is the lure of easy money so persuasive to allow them to suspend all logic? An example: InvestAmerica (OTCBB: INVT). Here is the company's profile: InvestAmerica, Inc. is a development stage Co. with a purpose to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to it by firms or persons that desire to seek the advantages of an Issuer who has complied with the 1934 Act. For the three months ended 12/31/99, the Company reports no revenue. Net income totalled (sic) $810 thousand, vs a loss of $60 thousand. Results reflect a forgiveness of indebtness (sic). Let me translate: We're not doing anything. We're looking for something to do, and we're interested in merging with a company that would like to become public the easy way. Current market cap? $148 million dollars. For no revenues, and $500,000 in the bank. Look, I don't want to cast aspersions on the company, but starting up a business is hard, even without the added hassle of dealing with public shareholders. More than 80% of all new companies fail within the first two years. The people who have invested in this company have given themselves, mathematically, a 20% chance of even getting their money back. On what? A company with no business plan whatsoever. We often talk about the illogic of playing the lottery as an investment (average return -50%), but these people would be better off if they DID put their money into lottery tickets.