The Pit - IMI Trust

Macquarie Bank is down 20% from it’s all time highs a fortnight ago.  This was mainly caused by concerns on the creditworthiness of consumers taking out Sub Prime loans in the US.  However, you shouldn’t cry for the bank here.  This is the reaction from Jim Cramer on CNBC about the market in the US at the moment.  Armageddon!

This week the Australian Financial Review reported that 80% of the 96 companies which listed on the ASX this year, had their share price go up in the first day of trading.

Empowernet International (ENI.AX) is not one of those companies. In fact, on their first day of listing, their share price went down nearly 50%. Better yet, after a few days, Empowernet went from its list price of 0.55c to around 0.07c. For IPO investors, this signifies an 80% loss on their holdings to date.

If you do not know who Empowernet International is then you’ll see their main revenue stream derives from onselling Anthony Robbins personal development products and merchandise. Key person/company dependency. Check!

Empowernet International doesn’t have a written contract in place guaranteeing exclusivity either. No owned IP. Check!

Results can also be uncertain if their are changes to the marketplace - Few corporate processes or systems in place. Check!

When a company lists it needs to be able to drive by itself with the management team being custodians of the vehicle. If these continuity issues aren’t resolved then the market loses confidence and share prices fall. Incredibly, the one of the directors of Empowernet had the exact same issues when listing Sales Pursuit.
Our advice to Empowernet to get the share price up is a three step process:

1. Change the company name to Empowernet Resources International.
2. Announce that the company is now actively exploring Western Australia and Queensland for Uranium, Copper, Nickel and Gold.
3. Announce that the company was in negotiation to supply China and India with the new found resources.

If they did this, the share price will be hitting $10 or $20 in no time. Virtual miners are big on the ASX at the moment.

That would be a common sense play.  Who knows what will happen next?  Apart from a glut of Hedge Fund managers jumping off building tops because they didn’t know when to hold ‘em or when to fold ‘em.

Anyone have a spare $11bn?  Check down the back of the sofa.

Recently, the population of NSW witnessed what has to be one of the poorest marketing pitches in history.

For all the brain power behind these campaigns, this is the best slogan the NSW Liberals could come up with.

Are you ready? Drum-roll please!!!! This is it…

“Don’t Vote Labor”

That was their campaign slogan. Here is my personal tip for the NSW Liberals…

‘Sack your entire marketing team.’

This slogan would be about as effective as the military recruitment campaign slogan being “Don’t think about bullets flying past your head and potentially being blown up.”

Here are some more reasons the NSW Liberals want to sack their marketing team tomorrow…

• “Don’t look down”
• “Don’t think of the colour blue”
• “Don’t think of a tree”
• “Don’t think of the TV”
• “Don’t think of Morris Iemma being re-elected”

Ever watched kids? Have you ever noticed how whenever you say “Dont do…”, they do it? As adults… we are not that different!

Yes, NSW Liberal Party. You GAVE the election campaign to the NSW Labor Government with your poor attempt at marketing.

Now obviously this is being targeted at a Government, but the truth is… I see businesses doing this every day. In fact, one company I spoke with recently were looking at a campaign which would have people mentally connect fraud and their company name.

So if there is anyone from the NSW Government reading this blog, here is my last tip for you, “Don’t think about hiring our company to consult to you on your next campaign. Don’t entertain the idea. Please… don’t think about the possibilities of hiring IMI Trust to assist you!”

Lack of sales?  Lack of stock?  Market is too niche?  Too much competition? 

Companies can go broke because of one or all of these issues.

However, how many fail because of middle-management with a can’t-do attitude?  Many we suspect…