weekend aftermarket lounge 19-22 april, page-43

Kmac,

great quote from Aksier (so congrats to you both?)

I would reply that 'investors' must look for the difference between companies looking to gain share-price and companies looking to increase shareholder value.

This is extremely tough to decipher without experience at your way-side. All companies tend to be optimistic - how do we tell?

Well, as an example, take any of the companies using the words 'nickle sulphide' after the SIR boom last year. Thats adding shareprice. Normally so they can capital raise higher to 'hopefully' find something.

While you can argue that raising higher is a quality management technique, the fact remains that many companies should start with a quality exploration plan prior to spending their money. Not to mention some of the huge wastage spends I've seen on admin.

Then there is adding value, a company which says in as plain english as possible (sometimes it is not possible), what the plan is, to achieve what, when and how.

The above companies are rare and its hard to find management who don't focus on the share price rather than the long-term value.. this is because they have skin in the game themselves and are also prone to human emotions when money is involved. This is not a fault, it just makes them ordinary.

Exceptional management can get past this, have a long-term viable plan, and not need to spruik it with the latest craze words.

Find those companies and you will be a wealthy, healthy (because you can fall asleep easier at night) and happier investor.

As for day-traders, you need to find any company willing to throw buzz words into a crowd of hungry mouths, ride the wave, and exit silently like fly farting in the wind.