To: ANALYST10 who wrote (16032 ) 6/28/1998 3:05:00 PM From: Seth L. Read Replies (1) | Respond to of 50264
A10 I have been reading your posts and I enjoy your ability to express yourself. I have read a lot about DGIV still have more digging to go. I agree with your assessment on non reporting companies and I am not here to defend DGIV, but I think you are missing the point on why most people invest in bbs. Its the gambler mentality for the most part. Yes there are some that invest retirement funds in bbs, this may or not be wise depending on the persons ability to see their funds possibly slip away. Unfortunately there are also people who place at risk more than just discretionary funds into microcap. These are the investors for the most part that were suede by brokers, friends, and family, happens all the time.This is why you can get emotional posts that attack anyone that says anything remotely negative about a company. I hope you do realize however that there is a sizable amount of investors that follow bbs for the thrill of the hunt. They do not over invest they work with a percentage of their portfolio earmarked for high risk. You stated the following which of all your comments I take a little exception toIn such cases, some responsibility needs to be placed on investment professionals. At my firm, if you want to buy a penny stock, even if it is unsolicited, the broker will ask you are you aware of the risks, are you prepared to lose your entire investment and what is your suitability to make this investment. The broker then if he feels the client is not suitable (based upon specific standards) will not allow the execution of the trade.Example: John Smith is retired and living on Social Security of $300 per month and has $10,000 in the bank and wants to invest the whole $10,000 in DGIV or MSFT for that matter, he will not let him make the investment. All industry professionals should be that responsible . Never mind, I could go on for days. I appreciate the fact that brokers at your firm will not sell a bb unless the investor qualifies and understands fully the risks. The same statement of risk however should be stated to their clients if they are buying blue chips or bonds not just unsolicited bb trades. Your statement "that all professionals should be that responsible" is naive at best. Wall street from time to time runs red with brokers blood that are not making their numbers. In this day and age when the market and investors are thriving you do not see nearly as much red .Even your firm has brokers I'm sure that are wondering if the manager is going to call them into their office today and say this is not working out. This is exactly why disclosure forms and waiver forms became so popular about 10 years ago. Protecting the clients interest and informing the client is essential. As for the 10,000 most every broker wouldn't invest it all but 90% given the opportunity will take 7,000 of it. The other 10% are either top brokers that do not even talk to clients with less than a million net worth or will be selling cars in a few weeks. Thanks for the insights to all the other info . You what ever your motives are for real. I am still reading up and investigating DGIV. Good luck to all here. Seth