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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (36021)	11/25/2009 9:43:24 AM
From: Grommit	Read Replies (2) \| Respond to of 78666

FSC. I am out (with a $170 one day profit, whew). Thanks for the postings, Spec! I disagree with MCsweets comment: "but I would also point out that a company like FSC is originating loans to private companies, which requires more due diligence work..." Many investments require a lot of dd, and to say that making a private equity loan is so difficult that it requires extra compensation is a crock. It takes more dd for a REIT to do a development or buy a property, it takes even more dd for a consumer products company to launch a new product line. It is obviously more suitable for compensation to be stock based (or even bonus based) and not an automatic 2% of assets, and certainly not 20% of profits. And jeez, add another 5% of the IPO as a finders fee or something. Investors are stupid, and that includes me (us) for not digging deeper.