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Biotech / Medical : SANGUINE CORP. (SGNC) -- Ignore unavailable to you. Want to Upgrade?

To: TOPFUEL who wrote (3089)	7/13/1998 7:23:00 AM
From: Mr. Forthright	Read Replies (2) \| Respond to of 5402

Topfuel why have you gone back to your old way of talking to me? In any case, I would like to comment on your post. I have been intrigued over the last few months about the loose use of the words due diligence on SI. I have often wondered if the posters knew what due diligence meant. I have come to the conclusion that most people on SI believe that DD means any unverified info received from anybody at the company, any piece of info found on the internet that vaguely relates to a company's business or any theory about anything that support the supporters supportive point of view about where the stock is going. You wrote: <<soaking in the good D&D on this thread but somebody keeps on disturbing the good D&D>>. I fail to see what you are talking about other than the link to the E&Y article on biotech stocks valuation. What I see here is a lot of arguing, "let's feel good about the stock buddy" type statement, childish and certainly not funny distortions of the English language. Recently we have seen a lot of info posted here that comes directly from an interview with the management of the company. Is that what you call DD? I don't. I have tried to encourage people to do some real due diligence here by developing the valuation model. But most of you guys have no interest in it. I have been asking questions about SGNC for a while. Now I hear there was an interview or some kind of list of questions provided to the company. Hopefully the questions I have been asking are on the list. They are the real questions not the "the answer will make me feel good" type of question. I have been in the investment business for many many years let me tell you about the due diligence process. That process includes interviews with company officials, thorough independent research of all aspects of a company's business and markets, in-depth and complete background checks of all directors, officers and key employees, verification of all material contracts, interviews with key suppliers, clients and strategic partners, analysis of all financial statements for at least the last 5 years, etc. This process increases the odds of obtaining full, plain, true disclosure of all material facts. There is never any guarantee that we will not miss something but at least after completing due diligence we have a high level of comfort about our investments. Can the small investor do that kind of research? Unlikely. So what should he do? Do as much as he can himself but also rely on a reputable brokerage firm who would have a fiduciary towards him as a client. Retail investors should never rely blindly on his brokers advice and should get involved in the investment decision making process. So what about stock which are not covered from a research standpoint by a brokerage firm and have a limited corporate history? Do as much due diligence as possible, be skeptical, cynical and critical and cross your fingers. I believe SGNC deserves some more research. I would NEVER jump to buy the stock on the basis of what I have read here. But as I mention before I my start doing some real research myself. You will then see the prospecters and profiters of the world start to feel really left out. The quality of the research will speaks for itself. ASK THE THOUGH QUESTIONS GUYS, DON'T ASK QUESTIONS TO HEAR WHAT YOU WANT TO HEAR.