Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Gold/Mining/Energy : Direct Focus Inc. (DFXI) -- Ignore unavailable to you. Want to Upgrade?

To: Samir Jhaveri who wrote (151)	11/22/1997 5:43:00 PM
From: Clement	Read Replies (1) \| Respond to of 768

Samir, "The price drop to $2.60 just kinda freaked me out, but i'm new to this so i'll trust you guys." Thanks for the vote of confidence, but I'm afraid I'd have to refuse your trust. Like you, in the grand scheme of things, I'm new at this game, and one thing that I think you'll find is that things are not always what they seem. Take me for instance -- I myself am an overworked student toiling away at university. i.e. Trust no one and always verify facts. That's what I find great about SI -- people raise points I would never think of off hand and bring up points that I might never know about -- the discussions always centre around _ideas_. The flip side is that sometimes some people have alterior motives. That said, I think that BFX has a lot going for them and management seems to be quite confident in the actions they have undertaken: share buyback in the midst of a no doubt financially intensive marketing campaign, low forward p/e multiple (though I still am a bit suspicious about their accounting practices), and building/labour expansion. (Oh not to mention a superior product -- but then again, I wonder if you really even need that with infomercials) re: shareprice -- hey it happens. I have a few professors who will argue until they are blue in the face that the market is efficient but if anything, Bowflex and several other stocks I'm in have shown otherwise. I purchased Bowflex at 1.45, and then it dipped down to 1.10 for the longest time, even after announcement of higher income streams from their marketing campaign. There was good reason for a higher multiple before the release of the numbers I think because they had changed their marketing strategy. However, there was quite a bit of lag time before the share price reflected the results. What I've found is that sometimes the "market" is right (for instance, Bre-X), and sometimes, it is dead wrong. It just pays to do your homework -- know enough about your companies and their products and you can reduce the probabilities of Bre-X's. I just keep on telling myself that paper losses are not real losses until you actually sell (and vice versa), and fall back on what I know about the companies. Sometimes it requires a lot of pain killers to maintain your resolve, but heck, when you're right, the thrill is worth every second of pain :) You're quite welcome for the article exerpt, Clement