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Georgia Bard

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Followers 52
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Alias Born 08/30/2000

Georgia Bard

Re: None

Tuesday, 10/31/2000 5:10:25 PM

Tuesday, October 31, 2000 5:10:25 PM

Post# of 484
Who Will Be The People’s Voice?

I do not profess to know the opinions of the entire Internet commonalty, nor even a diminutive fraction thereof. However, based upon my limited observation on the many sites of the Internet, what is wrong with someone or a site stepping up to being the “Voice of the People”? Not twisting the information but including all the mistakes, misconceptions, and ignorance. However, in order to be an effective voice of the people certain verifications should be done also. Ranting is one thing and a legitimate concern is another.

I have always believed the "Voice of the People" should and can play a significant role in the shaping of the market. Especially, since small investors are the ones that are supplying capital as they attempt to invest against the big money that essentially controls the market. Maybe the "Voice of the People" can cause change so the small investor can eventually be part of a level playing field as with the start-up companies.

The truth is simple as this: if public opinions are not drawn forth and amplified for all to hear, they will play little role in any market change process. Without people voicing their concerns, top officials will be left with relatively unobstructed power to arrangement the market at their discretion. Heck, the OTC is a prime example.

These companies have recently been forced into compliance by filing SEC filings. This one law helped the small investor probably more than any other measure. However, the bad thing is once in compliance, these small companies are forced to trade in an unregulated market.

As leaders of the market, the SEC and other government regulators should indeed drive the process and development of the market to meet the new age of information. However, their changes should adequately prove to be beneficial and speak on behalf of the small investor populace, not just big money. These actions or changes would express that earlier in the process they reviewed ample, balanced and accurate information of the small investor’s concerns. Aside from a few small scenarios, there have been a lot of opinions with a solid underlying basis by the small ignorant investor that have exposed a few possible wrong doing schemes.

In order to give proper weight to the opinions of the Internet populace of small investors, in my judgment, will require a three-step process.

First, the small investor must be provided with enough unbiased and accurate information to arrive at well-founded opinions and investment decisions. This was accomplished by making OTC publicly trade companies comply with filing SEC filings. But is that enough when so much market information is floating around the Internet is so false. A professional site should be also established to detail facts on shorting, 144s, logistical operations for the market, legal and historical information the general populace should know, etc. Another words give the small investor the ability to realistically assess the facts for investing in the market through a reputable site manned by the SEC. Without widely disseminated, impartial sources of information, investors cannot maximize their participation in the market. This is not available in the unregulated OTC market, which means people have to use the bigger regulated markets as a source for this information.

Second, why not have a market related site to draw forth and amplify public opinions. To do so effectively, a concerted effort is required on the part of political bodies, SEC, NASD and the media. Presently, the Internet and its random sites are all that is available of the OTC Market. OTCNN was, and I say was, such a medium with Jack Burney putting out the voices he received.

Historically, small investors in legit start-up and development companies have endured a long legacy of injustice by the unregulated OTC regime, and some may be too afraid to voice opposition to the OTC market’s existing policies. Others, weary and frustrated by a long period of unresponsive regulation, may simply want the market to move forward, conserving their voices until it produces a result. Of course education, geographic, linguistic and regulatory barriers may also present obstacles to voicing a concern.

Though it is clear that gathering and reproducing public opinion as Jack Burney attempted to do obviously is far from easy. It is nevertheless, I believe, an essential task to be undertaken in a pledged democracy. Commendable projects have already been undertaken by some Internet mediums to disseminate opinions and encourage public opinion right, wrong, or indifferent. The unregulated OTC market is becoming a paramount concern. Publication and broadcasting of investor opinions not only serves to inform the market of the public will, it also educates other Investors and helps them to arrive at informed opinions of their own. Again, right, wrong or indifferent but what else do they have since most realize that brokers say buy when they are selling and sell when they are buying and very little profit comes from the professionals.

The third and final step in the process of weighing the populace will and opinions is that political decision-makers need to listen. So how do you get the rightful ears to perk up like bird-dogs (southern slang)? It takes the voices of people being redundantly disseminated till someone listens. Plain and simple, regardless of content, but especially if the content has a solid underlying basis for the opinion or concern expressed.

Of course the champion for the people is going to come under fire especially if certain due diligence does not happen. A perfect example was a concern that was put out by Jack on the OTCNN from a poster by the RB alias COOLHAND!

an almost impossible time trying to figure out the proper value of companies, because good news and increasing revenues and bright outlooks with high growth DO NOT translate into rising share prices.

Personally to me, this statement should have been challenged because was it by a day trader hung in a security and can't get out or a newbie with no clue of the market. Probably someone with no DD to support why they bought and only the price of the security is there only measuring variable.

News to my knowledge has never been a factor in determining the value of a company. News releases are merely a vessel to draw attention to the stock. Remember "Buy on Rumor, Sell on News"

As far as figuring out the value of a company that is not so easy regardless and revenues do play a part in the ebaluation because it shows the company is operating with Sales used for computing: Price to Sales Ratio - TTM & Price To Sales Ratio Prior - TTM.

Next comes the bottomline earnings and cash flow, which leads to certain VALUATION RATIOS such as: Price To Earnings Ratio - Excluding Extraordinary Items - TTM, Price To Earnings Ratio - Excluding Extraordinary Items - Prior TTM, Price to Cash Flow Per Share Ratio - TTM, & Price to Book Ratio - Quarterly

Or FINANCIAL STRENGTH RATIOS such as: Payout Ratio, TTM (%); Current Ratio, Quarterly; Long Term Debt To Total Equity, Quarterly; & Total Debt To Total Equity, Quarterly.

Or PROFITABILITY RATIOS such as: Operating Margin, TTM (%); Operating Margin, 5 Year Average (%); Net Profit Margin, TTM (%); Return on Average Common Equity, TTM (%); Return on Investment, TTM (%); Return on Assets, TTM (%); & Tax Rate, Effective, TTM (%).

Bright outlooks did not appear to be referring to GROWTH RATES - Sales Percent Change; Most Recent Quarter vs. Quarter 1 Year Ago (%); Sales Percent Change Industry, Most Recent Quarter vs. Quarter 1 Year Ago (%);Sales Percent Change, TTM Over TTM (%); Sales Growth Rate, 3 Years (%); Sales, 5 Year Growth Rate (%); EPS Percent Change, Most Recent Quarter vs. Quarter 1 Year Ago (%); EPS Percent Change, TTM Over TTM (%); EPS Growth Rate, 3 Years (%); Earnings Per Share, 5 Year Growth Rate (%); Income Available to Common Growth Rate, 3 Years (%); Dividend Growth Rate, 3 Years (%); & Capital Spending, 5 Year Growth Rate (%).

Or EARNINGS ESTIMATES such as: Current Fiscal Year Projected P/E Ratio ($); EPS Mean Estimate, for the current quarter ($); Current Fiscal Year EPS Mean Estimate ($); Long Term Growth Rate (%), Mean; Or maybe the you mean the analyst quotient such as: Number of Analysts - Current Year; Number of Analysts - Long Term EPS Growth Rate; Average Recommendation (on a 1-5 linear scale); & Earnings Surprise (Estimated vs. Actual), 1 Quarter Ago (%).

If anyone does not understand any of these terms then they are right, it is impossible to evaluate a company. However, they should consult a professional in the market for proper evaluation of a company. When they do they need to be sure to inquire about such items as: Sales (Revenue), TTM ($ millions); EPS, Diluted, Excluding Extraordinary Items, TTM ($ per share); Assets, Current, Quarterly ($ millions); Assets, Total, Quarterly ($ millions); Liabilities, Current, Quarterly ($ millions); & Interest Expense, TTM ($ millions)

Many times they fall, with rising volumes, and it seems the only reason has to do with naked shorting.

That answers itself as to the ignorance of the statement. Typically, shorting is basically price drop on small volume because of low risk when the buying interest dries up. Whereas dilution and/or day trading accounts for high volume and drop in price. Dilution can be from 144, debentures, conversion prefer stock, options, incentives, warrants, etc.

BTW large volume and drop in price, to me means it may not bounce back, whereas low volume and fall in share price will bounce. Hey, I could be wrong, which is why people should consult a professional on PRICE & VOLUME items such as: Beta; Marketcap - Price ($); Price, 12 Month High ($); Price, 12 Month Low ($); 4 Week Price Percent Change (%); 13 Week Price Percent Change (%); 26 Week Price Percent Change (%); 52 Week Price Percent Change (%); Average Daily Trading Volume (millions); & Average Monthly Trading Volume (millions).

So basically a "Voice of the People" should validate the concern. The rest of this particular voice appears not to have been the words of the voice but excerpts from other opinions that were cut and pasted. Now how would someone know that would take doing a little background work on the poster. Still no assurance they would discover it the words were of someone else. Just a few minutes reading the history of the poster could expose that maybe the poster is using excerpts from other compositions like Kenneth Klaser’s write up to the SEC on Shorting http://www.sec.gov/rules/concept/s72499/klaser1.txt in June of 2000 or George Chelekis’ 1996 essay on "The Deadly Art of Stock Manipulation" http://www.geocities.com/WallStreet/Exchange/1371/Chelekis/deadly_art_of_market_manipulatio.htm

Janice Shell is one such voice that brings clarity and critical thinking on the other side of the coin to pro posters. Of course typically, critical thinking does not happen but a flood of emotional personal attacks spring forth. Mainly because she does not believe all manipulation is by the Market Makers. I agree with this and I believe the Market Makers Blue Sheets will disclose any possible manipulation. So the focus has to be directed to the source, which is the market makers.

Bottom line is someone has to step up to the plate with an honest endeavor to provide the people with an impartial vessel to air their concerns and to foster public discussion on the topic at hand. That is what the constitution is all about. Isn’t the American way of the people, by the people and for the people.

Will InvestorsHub be the new “Voice of the People” Internet site?

I dunno, but this is my opinion and I could be wrong!

Gary Swancey



:=) Gary Swancey

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