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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (5065)	8/11/2022 4:46:15 PM
From: Sun Tzu	1 Recommendation Recommended By towerdog Read Replies (2) \| Respond to of 10705

BFLY and NEO are very different so I am gong to split my answer as to why I like them. But there are somethings that are common: Both companies are financially sound. Sound enough that I don't worry they are going to go belly up 2 years from now. Both companies are growing their revenue very well. And both have smart management that is flexible in their approach to growing their business. Since both are microcaps, the above statements should be taken within that context. Smaller companies are always riskier. BUT, since you brought it up, I'd like to draw your attention to how some quintessential big cap value companies such as GE and GM have fared over the years. And I don't mean that as an investment, but rather as to how financially stable they have been. Which is my way of saying that investing a dangerous activity and you can't judge the safety by the size of the company. BFLY - They are in a space that I truly love and believe will be the next great wave of growth. That space is intelligent sensors and IOT. On top of that, BFLY is in the best place in that space - a mobile and easy to use medical device that replaces very expensive bulky equipment. Their goal is to be as ubiquitous as the stethoscope. If they can achieve a 5% penetration, they will be a 100x bagger. NEO - They are one of the very few rare earth processors in the western world. Their operations are environmentally clean and ESG (I know how much you hate that <g>). With the trend to move away from China, NEO is likely to win government support. And if EU or the US imposes environmental taxes on Chinese rare earths, then NEO will win even bigger. But even without that, Neo is growing their revenue just fine and making enough money to sport both a low PE and a fair dividend. Now why is it that you think these guys are not worth the electrons that spell their names? PS I have never ever resented someone questioning why I believe something. IMO, if you are not comfortable being questioned, then you have holes in your belief. This is as true for stock positions as it is for religion or party ideology. But it is especially true in the stock market b/c there should be zero subjective belief. There is no room for "faith" in investing. So I'd like to thank you for questioning me and helping me clarify my position. I will appreciate it even more if you poke holes in my answer, which is why I asked you to explain your opposition. It is a genuine ask. PPS I based on the above, I have never put anyone on ignore for disagreeing with me, even if we vehemently disagreed. The only reason I ever put a person on ignore is if they are a rude asshole and intentionally want to be hurtful to others.

To: Lee Lichterman III who wrote (5065)	8/11/2022 5:34:15 PM
From: Sun Tzu	1 Recommendation Recommended By Lee Lichterman III Respond to of 10705

As to your last question - what is to stop some bigger company from running BFLY into ground? The honest answer is that nothing stops them if they really want to. But that is not a likely outcome. BFLY is already competing with another big boy in that space (can't remember if it's GE medical or PHG). And they are winning. They have a better product that is protected by a patent. The most likely way BFLY is taken out by a big device maker is that they will buy them out so they get access to the patent and the customer base and leapfrog years of development and marketing. I really hope that will not happen. I prefer to see them grow into a giant on their own accord.