The Big Score was written by Jacquie McNish, Doubleday, Toronto, 1998 and the names involved were Robert Friedland, Inco and the Voisey Bay nickel find . The basis of the book is a penny stock promoter who has a wonderful ability to hype the possibility of a big score, but under normal circumstances is nowhere close to getting it, however by luck is involved with the biggest nickel discovery in the world. The other cast of characters include major nickel mine operators one has held the number one spot for generations Inco and the other is the number two company (Falconbridge). There is an old Avis rent-a-care slogan called we are # 2, we try harder. Rightfully or over time, the type of individual who gets involved with different companies includes their personalities linking to the companies. The market leader, in this case, Inco, tends to be a very distinct image of who gets to be the President and what associations or clubs they tend to go to. From an outsider viewpoint, this typically means the market leader has greater access to decision makers or is seemingly very stable in their earnings – the question is not if they are profitable, but how much? The second company, in this case, Falconbridge, are seemingly nicer people, but to get the same respect as the first one, they have to be more profitable or have greater production or seemingly take on greater risk to match the number one company. The stock promoter has a function but is generally seen as the running into the grey areas of the law on a regular basis.

Linking to dividend paying stocks, while the stock promoter offers the greatest upside potential, the more likelihood of losing money, unless you are an insider, should be consider normal. From an investor point of view, the styles of management of the first and second company will be different, however both will tend to be profitable and it depends on how you like senior management of the companies. Every profitable companies go through cycles, in the case of these two mining companies, they both owned low cost mines, but Falconbridge owned more around the world and Inco’s costs were beginning to increase. When the reality set in with management of the top company, cheques books are open for business and acquisitions, till they settle into the normal habits of the top company.

There are more questions than answers, till the next time – to raising questions