be careful of gurus

Late last year we had a poster on esg who jumped ship to invest in mel.

His posts were often cryptic, highly entertaining and always received numerous thumbs up.

Often the messages would need deciphering by other posters.

Then he announced that he was going to jump out of esg and invest in mel as it had better prospects - seemed more likely to hit a $1 before esg.

At the time esg was in the mid 80s and mel about 57 cents.

I could not help but notice though that the shares he invested in always seemed to go down despite his entertaining posts about why they were about to take off.

Since then mel has slumped from 57 to 35 cents and esg has dropped to 68 cents.

So the warning is don't get sucked in by highly entertaining posters - they may make interesting reading, but they are no guru and you should not treat them as such - they know NO MORE than you.