Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Message: Re: Sad State of Affairs
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Jul 28, 2015 11:22AM
3
Jul 28, 2015 12:24PM

Schnauser said, "leverage turns a patient person into a lunatic. perhaps you've noticed."


You bet I have. For me, it's not an issue. For the general investing public, well, that's another matter. I never recommend leverage to my clients unless we are merely swapping debt in an effort to make a mortgage tax deductible.

From 1997 - 2007 I worked with another advisor who loved to recommend leverage in an effort to grow his book of business. This was at the top of my list of reasons for leaving that relationship to focus on my own practice. During the March 2000 - March 2003 period his clients had their "s*#t in a knot" (as my mother would say) A $100,000 loan could be down $40,000. To walk away would leave them with thousands in interest spent and a $40,000 debt with nothing to show for it.

I try to put investing in perspective for people all of the time. It is my greatest challenge on my show, as it's radio so there are no visuals.

As I stated months ago, these price fluctuations are absolutely meaningless. If you're here for 'the big day' you shouldn't care about today's price. The only relevance is with respect to POET's ability to list on the NASDAQ. This will be quickly solved with even a moderate NR. Then, if necessary, a share consolidation.

I, myself, would feel quite comfortable with leveraged shares in POET, because I am a convinced investor and an investment professional. I would not recommend this strategy to anyone else, that's all. The negative sentiment and, in some cases, virtual panic here tells me there are few who could stomach it.

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