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Microcap & Penny Stocks : The Henley Group, Inc. (HNLY) undervalued growth company -- Ignore unavailable to you. Want to Upgrade?

To: Jack who wrote (1611)	7/11/1998 1:27:00 PM
From: Psycho Killer	Respond to of 2232

Let's say, for the sake of argument, that "hnlyinfo" has some kind of "inside" information. There are still some problems with relying on his (her?) posts. First, if the "insiders" spew out crap, then crap is what hnlyinfo will pass along. The whole story of upcoming acquisitions, and how finally (somewhere down the road) HNLY will "turn the corner" -- this has been part of HNLY's whole story for years. And before it was HNLY, Swarzman played the same games in other industries. The pot of gold always has been just over the rainbow. Pretty slick way to keep the shareholders' minds off the fact that you've NEVER succeeded in making money, with or without acquisitions. So now the "insiders" say there are more acquisitions coming up? Well, so what? Depends on what they're buying, how much they're going to pay, and how much profit they're going to being in. This magic $20 million revenue number hnlyinfo alludes to doesn't mean much unless you know how much of that $20 m would be profit. Second, even if you accept as fact that HNLY is going to have a "flurry of acquisitions," it takes more than that to get to a per-share price of $1.50 or $3-$5. hnlyinfo tosses these figures out without any explanation. It's easy to pull numbers out of the air, and a lot harder to figure out how we get there from here. It's one thing if you want to believe that hnlyinfo has access to info that's not fully public. It's quite another to rely on him as in investment advisor, and buy his wild guesses about the stock price. He could be dead-on accurate about what the company plans to do, and still not know what he's talking about regarding the company's chances of success.