Medivolve Inc MEDVF

Best stock promotes rests in one (1) word: TRUST

[Hiddensecrets]

It is amazing how many CEO's of public companies and, I am speaking of the large majority of them, something in the rante of 95% do not understand a simple concept which is:

The best stock promoter for your stock and your company is:   TRUST

Trust is a valuable currency and is never to be tampered with.   You do not need to hire stock promoters if you are trusted because the shareholders will promote your company to their families, friends, etc...

Where there is no trust, you lose your shareholder base who will not recommend or speak of your stock and, may even cause people not to invest in you because they are disgruntled.

Why do most companies fail to understand this simple concept?

It is because the allure of instant gratification from making unrealistic promises that turn out to be lemon promises is simply too great.    It feels terrific boasting and being the champion of the day.   But that is what it remains - champion for only one day.   Because there is a check and balance that is done on this.   This verification is done through TIME.   No one can escape time and, soon enough it catches up to you and exposes the false promises you made to your investors.

In turn you investors become bitter and sour and, they lash out at the company.   This in turn makes it a hostile investing environment for the company who has to fight off a mountain of false promises. 

So what is the solution?

It is simple.  YOU NEVER BETRAY THE TRUST of your shareholders.   And you accomplish this by never making aggressive promises that you cannot keep.  You always have to be conservative and respectful that people are trusting you with their money.   

A CEO can use caution when projecting the future and, always use a much bigger discount factor for uncertainities. 

For example in the case of MEDV, instead of bragging of putting up 2,000 cubes and doing 160 tests per day, they could have limited the cubes to the signed contracts in place that are available without committing to filling them all up.   

And they could have left the number of tests open, to say that we could do up to 160 tests however, we are realistic that operating a new business is difficult so we are keeping our expectations very low towards the lower range of tests - hopefully 20 tests per cube. 

In this way, investor expectations would have remained low and you build TRUST.

With financing they should have disclosed that we will need to do a financing and are looking at a possible bought deal in order to pay down some debt.   You do not blindside people with no financing and, then issue shares at a special discount of 50%. 

It is things like this that truly HURT a companies reputation and it takes a very long time to rebulid trust.

Usually this is done only through new management as investors have a long memory of when they get hurt, much like having kicked a dog for no reason, the investors will remember. 

I hope they have at the very least learned this lesson, it is never good to brag. 

Let success speak for itself without the mucho stuff.

mpo