Hi Dan (Mr. Zadder) and Rob (Mr. Fixmer),
I've just begun receiving your magazine and I was absolutely overjoyed
with your article entitled "ICG's Collapse" dated June 4th. I just read it
yesterday as every three weeks or so I try to get caught up in my reading.
So I apologize for my "delayed" response.
But here's why I was so pleased with this incredibly well-organized and
"pertinent" article and why it is very significant for me.
Well.. here goes... <grin>
If I recall correctly, there was a very influential Schwabb & Schwabb stock
analyst who used his clout to affirm that a "market correction" (meant to be
induced by virtue of his comments, I suppose) was in order so the Bull pulled
back and the Bear showed up driving down the markets as everyone was
"programmed" (in my view by the Old Economy Cynics) for this "inevitable"
correction.
And sure enough it became a self-fulfilling prophecy to the relief of Old World
Economic Cynics confirming them in their view that there is NOTHING KNEW
UNDER THE SUN (if you believe every single word in Sacred Scripture) as
"over simplistic" as that is. At least, that is "my" read.
Why I welcome your article is that it confirms my view that today we have TWO
DISTINCT economies with very different dynamics: there is the Old World
Economy and New World Economy of the dot-coms and there exists a divide
between the two such that never shall the twain meet. <grin>
A lot of people like the older generation, those 40+ years old and Old Economy
Cynics would like to believe that in the wake of the Bear Market it is "business as
usual" as there is nothing special about the so-called "New World Economy". They
are smug in their long time notion that out there in the world of business, the law of
the jungle continues to reign supreme and the struggle for survival means the
application of "force and power" as the keystones to success because invariably
there is NO easy road to success and for that reason you are obliged by "the
nature of things" to "scratch and crawl" your way to the top of the heap to be
King of the Hill.
The truth is that what they believe this to be true because of the rules by which
they have "habitually" played the game.
And my point is this: those rules often allowed for "crooked" activity when needed.
In fact, I'm of the opinion that the Dow Jones blue chip stock that get a 15% return
on revenue have always done so "by hook and by crook" the hard way and an
"outstanding" example is your story. Is it the exception? I think it's typical of blue
chip stocks though perhaps NOT to the same "godforsaken" degree.
The GOOD NEWS is that the Nasdaq dot-com companies can get 15% return
quarterly "hands-down without trying" by being "dynamic", "open", "transparent",
and "fast moving" creating "synergy" in their wake for themselves and their
"stakeholders", that Midas touch that people knew existed "in theory" if the
planets were properly aligned. (Ha! Ha!).
How do they do it? By having TOTAL CONFIDENCE in their employees and by
paying them TOP DOLLAR so they don't have to look elsewhere and more
importantly treating them as THEIR MOST VALUED CUSTOMERS. With their
"winning" employees working in an environment where everything is DESIGNED
to promote a "winning outcome" it's FULL SPEED ahead and just an easy matter
of "FOLLOW THROUGH" (i.e. execution of the game plan).
I sense we are seeing a titanic struggle on the stock market between the Dow
Jones old way of doing business and the new dynamic way of that of the Nasdaq:
one being "power" oriented putting its organizational leaders first, and the other
"service" oriented putting everyone in the company "on par" with everyone else
in terms of "status" and "say", perhaps NOT pay, but at least all employees tend
to have some equity in the company. This is a more futuristic, egalitarian approach
in comparison to what has been: the privileged at the top run the bottom rung like
Eskimos driving their dog sleds.
For me, the problems inherent in ICG's collapse are "classical problems" of a
bygone era when a "hierarchical", power-oriented way of doing business was
the "norm". With the fall of the Berlin Wall in November of 1989 and the taking
off of the Net subsequently that is no longer the case. We are into a new period
that of POST-Modernism in a big way thanks to the potential linkages and synergy
of the Internet that allows for unprecedented optimism and a real stabilization
and democratization of the global economy based of co-operation and
collaberation (more than competition) creating a more civilized, gentler age
that humanity has never known, so I believe.
What is REVOLUTIONARY is the understanding today that the employee is king,
NOT the manager: managers are there to promote their employee, NOT
themselves and by so doing increase their own sphere of activity and influence
inside and outside the company in a world where EVERYONE IS A PARTNER.
Creating a "sanitized" work environment that acknowledges and recognizes
"the regular employee" as the companys most valued customer creates the
invincible magic of "synergy" that makes a company shine and WORK FUN:
this does NOT go unnoticed by the OUTSIDE stakeholders.
For that reason, I argue that the Dow Jones blue chip companies are in trouble
because there is a NEW "modus operendi" afoot and they have to get in step in
order to be a player in the game. Drop the ball as they have been doing and they
will be sidelined. "Jack be nimble and Jack be quick" is what it is all about rather
than paying people "kickbacks" and "politicing" under the benches. They have
have to be on the field playing ball where everybody can see them so everybody
can judge their game. That is currently NOT the case given how underwriting has
done and how businesses/products have been promoted using "uncontested"
hype thanks to a well "greased" media machine. (Obviously, the media is a guilty
party in promoting blue chip stocks that everyone "automatically" is "lead" to believe
to be sound at least "superficially" when investors should be encouraged to "look
under the hood". How can some "institutional investors" be so blind? My point that
I want to make very clear is that the "old way" of doing business has always been
DIRTY, DIRTY, DIRTY - at least in my view.)
For that reason, I believe that the Nasdaq stocks are "seriously" undervalued
while the Dow Jones stocks are perhaps for the most part "over valued" by
institutional investors and senior citizens.
Or maybe, just maybe, I'm just a pie-in-the-sky idealist who has NOT learned to be
a cynic. (Ha! Ha!)
In any case, the article was amazingly well put together, well written, a VERY
ENJOYABLE READ that covered all the bases and left me "aghast". Great
investigative reporting! If only newspapers did "some" good investigative
reporting, they'd be rolling in the doo-re-me, I think. Too often we want to
see NO evil yet its staying us in the face - day after day. (Ha! Ha!) So nothing
changes for the better and everything stagnates as the waters are damned
so to speak NOT to mention the "unpleasant smell" one gets from such
bad/stagnant water.
Once again, let me say how grateful and impressed I was with the extensive
coverage of your BOLD article: a much needed breath of fresh air and RELIEF
that such incongruousness will NOT go unnoticed, but will be reported on by a
CONSCIENTIOUS PRESS. Such a GREAT ARTICLE bodes very well for your
excellent publication in my view.
CONGRATS to you all!
I really appreciated and admire the decision to go ahead and publish this
well-crafted, well-documented article. It will surely have investors thinking
about where they should put their money. As far as I'm concerned, it's NOT
surprising that so-called "ethical" stocks are doing better than expected. Or
am I just dreaming and out of touch with the crude reality of the market
place? (Ha! Ha!)
Anyways...
Thx a million.
I wish you all - much-deserved - continued success in your personal and
professional lives.
Best wishes to you and yours,
Ken
~~~
President of K+:
~~~
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