October 17, 2007
Blogs can be dangerous to you health
Bloggers are now beginning to face the same scrutiny and consequences as traditional media. I find this perfectly normal yet a reflection on the "freedom of internet fallacy" that many believe exists.
The internet is no more free as a media than television or print, its just that the "cost of creation and distribution" is far less than other route of information dissemination. It costs very little to setup a blog, far less than to create a printed media and attempt to distribute it. Therein lies the catch22 for bloggers.
Whereas some may see this as a license to write whatever they want, the truth is that bloggers should be held no less responsible than other writers, whether paid or not, for what they write. Governments, in my opinion, have every right to implement the same rules for organized media vs individuals who setup their own "information sites".
By no means do I condone draconian controls such as those exercised in countries like China, I am just stating that it must be dealt with equitably, with no more or no less authority placed over blogs than over other websites controlled by paid-media companies.
Bottom line, remember to be careful about what you write and particularly if your words can be taken to injure another.
Sass
Posted by sass at 01:21 PM | Comments (2)
October 09, 2007
China Commodity Collapse
We are perhaps beginning to witness a sobering of stock values and an extra sensitivity to bad news which we had not previously. LDK Solar is involved in a bit of a controversy regarding inventory valuations, as reported by a former controller.
The effect is to have their stock lose 25% of its value last week and continue its slide into this week and to bring general sentiment on stock values down with it. This simply points to an immature investment situation where "invest in China" is the driver, rather than fundamentals of a growth industry.
Whether I am right or not is in fact immaterial to the discussion of how to bullet-proof your company against such swings, yet here are some ideas which we have put into place:
1. Transparency and Honesty
Magnifying results will always catch up, whether in the next quarter or the one after that. Look at how many solar companies went public after a great quarter only to have their stock fall up to 50% below their IPO price when they reported "disappointing" following quarters. If you tell me its coincidental or market driven, I have a piece of land in Florida I'd like to sell you!
2. Distinction
"Where is your uniqueness?" I am consistenly pressing my team to breathe into our communications, strategies and end-product results. The only way to avoid commoditization is to differentiate ourselves from the pack. It doesn't mean that we won't be grouped into a "market sentiment" which takes us up and down the investment cycle roller coaster, it simply means that our swings down won't be as dramatic as others.
3. Deliver
Deliver on our promises. It shows discipline, ability and control of our destiny. Investors like that.
4. Keep your people happy
Last and certainly not least, the LDK issue is because of a disgruntled former controller. Now I am not one to say that is impossible to overcome, as I will attest for ICP Solar, yet the fact is that the issue came about as a direct result of the controller questioning the "ethics" of inventory reporting. This comes back to the culture being professed within the enterprise and how the top level of the company acts, for the rest will follow, or they won't, and then you may end up with a major problem on your hands.
Sass
Posted by sass at 09:50 AM | Comments (0)