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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (190)	4/19/1999 12:42:00 AM
From: Dusty	Respond to of 752

Kerry, regarding the following points posted by you: Look closely at the PR/IR firm (if any). Have they been involved with people (or companies) of dubious character in the past? If so, move on... Quickly... This is one game where the leopard almost never changes his spots... And the old dog doesn't want to learn new tricks. Why should they? It's more profitable to scam.. You, are dead center and on target. Several days ago I read a press release put out by an IR. It was essentially nothing more than hot air. I decided to make a few calls to verify if a deal was indeed in the works; guess what the other party had no knowledge of a press release being issued by the other party and NO there was no deal! It is my understanding the other party in question has sent their attorney to the SEC with the press release. The first thing I do is investigate the company officials and anyone connected to the company in any way whatsoever. If "anyone" has danced at the SEC ball, or the company is involved with unresolved law suits; I run. After discovering some IR persons are actually drafting / editing company press releases I tend to be highly suspect of anything submitted by them. Seems to me such an important function should be the responsibility of someone higher up the corporate ladder. It also appears that all press releases using the following words: "intent";" memorandum of understanding" or anything short of words indicating a DONE deal should be regarded as highly suspect. There are several places on the Internet where one can obtain a lot of information for a fairly reasonable price. Make sure you are not buying into a hot "air" deal that is a vehicle for the insiders and front-man to cash in. Ever notice how sometimes the person who started the thread just seems to vanish and does not stick around after a big runup in the stock price? Did they cash in the free or cheap shares they got for services rendered? Did they all of a sudden loose interest in the company? It is easy to get lost and take a powder when the other posters are keeping the thread hot with dismayed posts all asking the same question; what happened? There are companies who exist for the sole purpose of selling stock that is how some insiders make a living;don't contribute to their cause. Check out EVERYONE remotely connected to the company in question including the janitor, attorney and IR persons especially if they also happen to have a thread on the Internet and are disseminating company information. Remember, they will ALWAYS post what is POSITIVE about the company who has or will pay for their services. Invest wisely check e'm out then read the rest of the story. Dusty

To: EL KABONG!!! who wrote (190)	4/20/1999 12:03:00 AM
From: EL KABONG!!!	Read Replies (3) \| Respond to of 752

The Education of Danny Chapter #1... Yesterday I posted the introduction for this new short story (actually a drama playing out now on the ABFG thread). See: exchange2000.com Today I will draw heavily upon the following excerpt from this ABFG post: exchange2000.com Mr. Kelner went on to say....Daniel Miller had been posting inaccurate information about ABFG and on several occasions Kelly had tried to e-mail him, but Mr. Miller had not responded. Dan has been warned many times by many posters on the ABFG thread about using telephone calls to the company as the basis for his DD. My post on this thread has been referenced twice on the ABFG thread. See: exchange2000.com From the above post, I'll reference the following text: When you call the BB company you're going to hear the story the company wants you to hear. Almost always, that information is available elsewhere, in press releases or on the threads. A company insider isn't going to give you the inside scoop that hasn't already been carefully considered. If an IR/PR guy or an insider does give you what seems to be relevant information, ask yourself why this isn't public information already. Do you really think that they would give you inside information, even in error? If you post it, and it later turns out to be wrong, the company will merely claim it misunderstood you or you misunderstood their answers. Telephone calls are neither reliable or verifiable. And that word is the key. Verifiable... All information from a BB company should be independently verifiable or you should disregard it, no matter how favorable to the company's story. Well, Dan the "company response" was predictable and you were forewarned. In the unlikely event you wander over here to actually discover the DD process, maybe there's something in this post that will will actually light up your light, if you catch my drift... More tomorrow night... KJC

To: EL KABONG!!! who wrote (190)	4/24/1999 9:19:00 AM
From: Lynn Goodman	Read Replies (2) \| Respond to of 752

Queston to Kerry re Asian Internet Stocks Thanks for the great info on this thread. I am a newbie and am learning due diligence for OTC BB companies as I go. I admit to being quite taken (no pun intended, hopefully) by Fatt Matt and Francois Geolo's analysis of Asian Internet stocks. I haven't put a fortune into them, but I have spread a little money among IMOT, XNET, KYOM and ZIASUN. The reference in your post to "Vancouver refugees," etc. would seem to refer to these stocks. Can you give me facts to support your opinion? I recently returned from living in Hong Kong for 4 and 1/2 years and experienced a little of how business is done in China. It is mostly based on personal relationships, and that is something we cannot know about these companies. Having said that, I reiterate that Matt and Francois' DD at least appears sound to me, and they will immediately get out of a company that employs a suspicious PR group (witness TNRG). I am not into hype or bashing, I just want to understand your position and keep on learning. Thanks, Lynn