To: David M. Lomow who wrote (4038 ) 8/6/1998 7:11:00 AM From: Ally Respond to of 4718
>As far as mis-management goes, unless you bought the stock under a different management team, or they have profoundly changed their management style, IT IS STILL OUR FAULT. Should have done better DD into this one.< David, I don't wish to go on with a protracted debate with you either. However, I'm shocked that you should elect to put the blame entirely on investors when they lose their shirts because of mis-management in a company they invested in. If all investors take this attitude, what a heyday for corporate crooks! They start up a corporation, attract public funds through pumped up promotions of fabricated operations, squander away the funds, terminate the corporation, start all over again, well comforted with your view that management is never to be blamed or held accountable for its actions.They will simply turn to you and say "To bad, you didn't do your due diligence. It's your fault that you invested in us." I realize I'm stretching the example a bit too far, but do you see what I mean? Management of public corporations have the responsibility to be fully accountable to their shareholders. They have the responsibility to be skilled and competent, to be prudent with shareholders fund, to act in good faith and with intelligence, and to fully and honestly disclose information to shareholders on the company's progress. Shareholders should demand a lot from management of the stocks they invest in. If there is fraud, or misinformation, or fiddling with the books, a class action suit is appropriate. If management screws up because of plain incompetency, shareholders should remember the names of the people in the executive suite and never again invest with those names. Contrary to your view, shareholders need to be more active, not less, in holding management responsible to be competent, honest, and prudent in how they use company funds. And one more thing, this is the beauty of the internet medium and chat groups, lest we forget who made us poorer!