To: R Chen who wrote (1758 ) 10/23/1998 12:16:00 AM From: Ralph C. Cinque Read Replies (1) | Respond to
I appreciate your remarks R. Chen. But I am wondering how much trust we can have now in anything Dessauer says. Please consider: When he ordered the strategic sell/switch from Pokphand at sixty cents to Fletcher Forestry he said it was because news on Pokphand "comes to us far too slowly." Now, how sincere a reason is that? Hasn't news about Pokphand always come slowly, even during the times he was recommending it? Has anything changed? And he, being who he is, with all the contacts that he has around the world, couldn't he ferret out information about the company if he made an effort to do so? Isn't that what we pay him for? Am I the only one who thinks that that's not the real reason why he issued the sell order on Pokphand? And, if that's the case, then his explanation was merely a face-saving excuse. Am I allowed to be a little resentful about that, Dan, or would that be too emotional? Now, let's look at his suggestion to take the funds from the sale and "switch to Fletcher Forestry", and we'll see how genuine that advice was. Let's say a small investor had bought 100 shares of Pokphand at the initial price Dessauer first recommended it: $12. That's not an unreasonable assumption. A lot of small investors buy 100 shares of a company all the time. His $1200 investment would now be worth $60. Let's say he sold it, and we'll assume he has a standard discount broker and let's say the commission is anywhere from $20 to $30 for the trade. We'll take the average, which is $25, so subtracting that from $60 we have $35. Then he has to pay another commission to buy Fletcher Forestry, so that reduces his principal by $25 again. I'm no Math major, but it seems to me that he has ten bucks left with which to buy shares in Fletcher Forestry. Can you see now how ludicrous and downright insulting it was for him to even say that? It was a slap in the face. It was a joke, except that it was a mean joke. And, I honestly don't think it was said primarily with his Pokphand investors in mind. I think it was all part of damage control. The objective, in my opinion, was mainly to extract himself from Pokphand cleverly, that is, with the least amount of damage- to himself. If you are inclined to agree with me, then why would you have faith in anything he tells you from this point on, and why would you send him any more money?
