| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 735.1 | DO NOT SEND MONEY UNTIL RESEARCHED | TLE::PERIQUET | Dennis Periquet | Thu Jun 30 1994 10:23 | 19 |
|
When someone calls you on the phone for an investment opportunity and
tells you to send money (e.g., "I need an investment of at least
$5,000"), do not do it. I repeat DO NOT SEND MONEY. Never make a
large financial decision on the phone or based on a phone conversation
with someone you don't know. YOU must do your homework and checkup on
the person on the other end to ensure that what he/she is telling you
is true.
I recommend that you have them send you information that you can look
at, verify, and reply to at your convenience. Also, for most
individual investors, the mutual fund approach is the best way to go
(and of course this all depends on the individual).
In talking with brokers (in my experience), you must (unfortunately)
interrupt them abruptly to get a word in.
Dennis
|
| 735.2 | | VMSDEV::HAMMOND | Charlie Hammond -- ZKO3-04/S23 -- dtn 381-2684 | Thu Jun 30 1994 12:32 | 9 |
| re: << Note 735.1 by TLE::PERIQUET "Dennis Periquet" >>>
> When someone calls you on the phone ... DO NOT SEND MONEY.
I completely agree with Dennis's statement, which is actually a
special case of the following general rule:
*NEVER* buy anything because someone wants to sell it to you.
Buy something *ONLY* because YOU want to buy it.
|
| 735.3 | P.T. Barnum was wrong, for once | JUPITR::KRAUSE | | Thu Jun 30 1994 14:01 | 13 |
| I used to hang up on "cold-callers".
Then around 6-9 months ago, a broker cold-called me, and talked about a
stock - Mitel - which was "about to take off". At the time, it was at
around $6.50-$7/share. He told me that they had just won a big contract
from a big telecom company, and his analysts said the stock "tested" at
$9/share. The quarterly results were about to come out, and he wanted
to know if I'd be interested in the stock. I asked him to send me any
data he had on Mitel, and I'd let him know. (My intent was to do a dry
run before talking to this guy any further.) Since that original call,
the stock has skyrocketed to $2.88/share.
I don't take cold calls any longer.
|
| 735.4 | | NETRIX::michaud | Jeff Michaud, PATHWORKS for Win. NT | Thu Jun 30 1994 14:21 | 8 |
| Or let's put it this way, if you are being offered a hot
investment, remember who you are and why the brokers "best"
customers haven't already consumed all of this investment.
The most likely reason the broker is pushing a certain stock
in a case like this is because the broker is getting a good
commision, bonus, or other form of kick back for selling this
particular stock.
|
| 735.5 | The only one broker than you! | ODIXIE::GELINEAU | | Thu Jun 30 1994 15:23 | 5 |
|
He wants you to be "broker" than he! There are too many viable stock
investments as opposed to being taken on a so called hot tip!
Good luck!
|
| 735.6 | | MSBCS::BROWN_L | | Thu Jun 30 1994 15:39 | 3 |
| It's sort of ironic, but if you were to short all of the cold call
recommendations, instead of buying them, it appears you'd have
a pretty good track record.
|
| 735.7 | | 23989::VETEIKIS | | Fri Jul 01 1994 11:05 | 3 |
| Thank you all for the advice.
Curt
|
| 735.8 | Maybe they're not after the commission... | KELVIN::MCKINLEY | | Fri Jul 01 1994 15:53 | 16 |
| > At least once a week I get a phone call from a brokerage firm (take
> your pick), where a broker gives me the sales pitch on his speculative
> stock of the month. Of course, he/her is very interested in me buying a
> large block of stock (for he/her to make their commission). The successful
> outcome is that within a couple weeks or month, this stock price will
> theoretically shoot through the roof and you will make an excellent
> return.
I wonder if some of these brokers who give you the name of a stock hope
that you will try to "beat" him and buy the stock through another
broker after you say no to him. The resulting demand for the stock may
help him unload some stock that he has sitting on the shelf. So even
if he gets no commission and has "given away" his great tip, he makes
money and his cold calls spread the word.
---Phil
|
| 735.9 | A Different Approach - It Works.....! | POBOX::PATEL | | Mon Jul 04 1994 02:36 | 41 |
| I usually take a different approach than all the answers that I have
read so far.
I listen very carefully to their APPROACH. I find out the REAL REASON
why by DRILLING THROUGH THE RESEARCH THAT THEY HAVE COLLECTED. Once I
find that this person really has done the homework, I ask them to
forward me their research, the company's investment relations firm and
then start MY OWN RESEARCH on them. I am currently talking to three
new ones, who I have to say, have a lot of patience, since they know I
will not open an account unless they PROVE THEMSELVES IN REAL-TIME +
TELLING me something about their past performances (which is something
I have to trust when they tell me their 70%+ Win to Loss Ratios!!!! -
Ya Right).
Keep in mind that Cheyyene Software, Micron Technology, Sulcus
Computer, Dell Computer etc were stocks that have been mentioned to me
from these fellows. I usually learn something or the other from the
time I spend with some of these folks.
Bottom Line: I have opened FOUR ACCOUNTS with FOUR of these guys and
have made money on ALL FOUR of those occasions - Once again it was not
because they had a good pick, but it was 'cause I timed their
recommendations using my own research and techniques.
BOTTOM-BOTTOM-LINE: It's really not who gives you an idea, but what you
PUT INTO IT to make money in these types of markets.
Well, that's my two cents, since you asked....These cold calling guys are
currently talking about MADGF - Token ring card/PCMCIA card
manufacturer, CMVT - Comverse Technologies, and RNDM - Random Access.
Ken
P.S: I made some good money in MLT before it took off from $2 1/2 to $9
and then came right back since the supposedly "CHINA ORDERS" took
longer than 2 seconds to materialize.....!!!!!! ;-)
P.P.S: I always ask the more aggressive ones, that IF THIS
RECOMMENDATION IS SUCH A GOOD DEAL, HOW MUCH OF THEIR MONEY IN IT AND
AT WHAT PRICES DID THEY BUY IT FOR THEIR PERSONAL ACCOUNT?.
|
| 735.10 | Just say no to IPO's... | CARROL::YOUNG | where is this place in space??? | Tue Jul 05 1994 14:09 | 23 |
| i remember a cold call i got once from a broker pushing a company called
National Media or some such...they were listed on the NASDAQ and put
together many of the early 'info-mertials'...
They were selling for about $11 and the broker insisted that $20/share
was right around the corner. Well i brushed him off by telling him to
send me a prospectus and i'd consider it. The prospectus showed that
the company had been in Chapter 11 a year or so before and was just
getting back into the black.
Well i didn't put any money in it, but i tracked it for a while...about
a month or so after the call, the stock took a nose dive from about $13
down to around $5...i'm sure there was some sort of inside BS going
on...the brokers and the 'management' team probably made out well...but
many small investors probably got taken to the cleaners!!!
Based on this, i watch out for the 'scheme' based front companys
trying to float an IPO just to pull people in and then pull the
plug...seems it happens more often than the SEC or investment community
would like you to realize!!!!
My 2�,
Dugo
|