SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : The Microcap Kitchen: Stocks 5ยข to $5 -- Ignore unavailable to you. Want to Upgrade?


To: 1Coffeehound who wrote (99729)9/15/2010 2:01:48 PM
From: rogerover  Respond to of 120415
 
Honestly, I paid so little attention to where the Prime Equity report went last time, I didn't know whether they put it out themselves. Some "paid for research" companies do that to try to attract new clients. For certain, this report would have been (and still will be) disseminated by Prime Equity through Investrend or one of the other news aggregator services. The point (perhaps poorly made) was, it was going to be circulated anyway, so Wilson figured it would be foolish not to take the opportunity to say a couple of positive things that weren't in the report.

This gets us back to whether the $12,500 Northstar spent for the coverage was a good investment. There's no question that the original Prime Equity report got a few new eyes to focus on the company, particularly when the report was distributed through Investrend. On balance, however, I would have saved the cash.

I generally agree with you on the lack of "independence." However, in this case, the company had no input other than fact-checking the final report for accuracy. Wilson tried to get the analyst to correct a couple of poor assumptions he had made in his valuation models, without success. One such assumption, that NEIK will have to issue up to 28 million new shares over the next couple of years to raise funds, is simply ludicrous. They are looking at debt and factoring options and are absolutely NOT going to dilute with equity like that.