The Neo-Market Report

by Sterolab

And now it's time to join our hosts for this week's edition of the Neo-Market Report. Along with bringing you the latest from the floor, Neil Kauvuto and Maria Blumaroono will be joined by Charles Schwocky, Chairman of Charles Schwocky & Co., who will discuss investment strategies in the wake of the biggest crash in Neodaq history. And now, here are Neil and Maria…

KAUVUTO: Hi and welcome to what has to be one of the most difficult installments of The Neo-Market that we've ever done. As always, I'm joined by my co-host Maria Blumaroono, who's at the News Desk with the latest news on what is being called "Black Tuesday" by investors…

BLUMAROONO: A "Black Tuesday," indeed. Tuesday, December 5th was a day that, much like the dreaded "Black Thursday" of the 1929 U.S. stock crash, brought investors to their knees as the value of their stocks plummeted with unprecedented swiftness. The most glaring example is Chiatech Password Security, who saw its stock price plummet an unbelievable 94%. Even as we speak nearly three days later, Chiatech's value still sits at 13,000 NP's, as opposed to it's value of 254,000 NP's at Tuesday's opening bell. Due to long-circulating rumours that the price-to-earnings ratios of many of the Neodaq's most valuable stocks had gotten way out of hand, a number of investment firms recommended selling earlier in the week. This led to a flurry of sales when trading opened on Tuesday and within hours that flurry had snowballed into a blinding barrage of sell orders. Blue chip stalwarts like Kacheek Telecomm, Neggwork Commerce and Cybun Electromatics were all obliterated and left with values of less than 5,000 NP a share.

KAUVUTO: Amazingly, there have been a few companies managing to prosper in such abominable conditions. Companies such as Yippee!, whose value has steadily progressed over the past month, continued it's forward surge. Others who have posted surprising results this week are The Presidential Palace, whose Director of Operations P.J. Grundonn visited us last week, and the Alien Aisha Vending Company, whose CEO Sentron X has agreed to visit us next week.

BLUMAROONO: However this week we are joined by the founder and Chairman of Charles Schwocky & Co., the one and only Chuck Schwocky. Chuck, glad to have you drop in.

CHUCK: I'm glad to be here Maria…Neil…

BLUMAROONO: Well, after the beating that the market has taken this week, I know a lot of people have got to be a little gunshy about putting their money back into stocks…

CHUCK: Yeah…who knows, I might have to go back to pluckin' chickens! Ha Ha! But seriously, at Schwocky we're not interested in the turn-and-burn, make a quick buck investor. We're looking for folks who see stocks as an integral element in investing for long term growth. In many cases, these kinds of downturns present a number of opportunities to get onboard with a blue chipper that you know is going to be around fifty years from now.

KAUVUTO: So what would you say the typical Schwocky investor is like?

CHUCK: Well Neil, although we treat each of our investors as individuals with diverse needs and opportunities, the fact is that most of our investors are looking for a long term strategy which will facilitate things like their pet's education and a comfortable retirement. However, there are a number of factors- such as income, age, and a willingness to take risks, which makes each case unique. However, we do present our investors with the Schwocky philosophy that investing should be approached as a lifelong commitment.

BLUMAROONO: With the rise of the Neonet, what kind of impact has technology had on investing?

CHUCK: Well technology has certainly has had a monumental impact. With the emergence of online trading companies like Neo*Trade, for a period there was speculation that companies such as ours would become relics. However, many of the maverick "day traders" who attempted to go it alone got their clocks cleaned, if I may be so blunt. So yeah, now they realize that maybe that companies like ours aren't so bad, after all.[snickers]

KAUVUTO: Well, that's all we have time for this week for The Neo-Market Report. Thank you and good night.