The SEC actively encourages independent research. However, the SEC, FINRA and other regulatory agencies are rightly concerned about the excesses in the investment awareness industry. There are no insurance policies provided by Wall Street research firms including our commercial advertisement documents. FNME fell about 99.5%. Ford Motors fell about 96%. Major Wall Street brokerage firms recommended buying these stocks and others at their peak prices. We are not aware if there were investor complaints on these issues, or whether the SEC acted against any mid cap or large cap companies whose shares fell in a similar manner.
We are aware that there have been complaints in the penny stock market when stock prices drop significantly. Should the SEC be more sensitive and concerned to price drops for mid cap and large cap stocks, or penny stocks? We do no know that answer. We do know that the investment community in various markets encouraged prospective investors to buy shares of mid cap, large cap and penny stocks.
The front page of our reports guide the reader to our 4 disclaimers at the end of our documents: the SEC filing outlining risks, if published, short disclaimer, full disclaimer and our price target disclaimer. These disclaimers clearly state the risks of investing in the penny stock market, short term and long term should these companies not be able to raise cash. Our disclaimers tell the investor to do his/her research, not rely on our price targets and understand the risks in the penny stock market, especially investing long term. Our full disclaimer is carefully divided into sections with headlines for each reader to study and read carefully. Our disclaimers comply with SEC, FINRA and other regulatory agency rulings and mandates. They are most important to read carefully before investing in any issuing company.
We believe our reports are based on academically defensible, solid in depth securities analysis. We believe this level of Information is not available in the investor awareness industry.
We believe we are the only firm in our industry to forecast each company for 5 years via their income statement, balance sheet and cash flow statements in three cases (Optimistic, Base and Pessimistic), most reports assume capital is raised, creating our Cohen Price TargetTM.
While any regulatory agency can inquire about a given company or campaign at any time, we believe our documents can serve as the basis for corporate expectations and corporate communications for all investor awareness, IR and PR campaigns.
The Investor Awareness industry functions primarily on short term price activity. The Cohen Price TargetTM assumes that companies raise the necessary capital to meet our projected price targets. These price targets are academic theory, should not be relied on, and are highly risky because smaller companies must raise cash to reach our outside analyst's forecasted price targets. If capital is not raised for most of our client companies, our price targets, short term and long term might not be reached. Certain of our price targets may seem high in high growth industries; other price targets may seem low in lower growth industries. Price performance can be heavily influenced by the structure and amount of money spent promoting each campaign. In addition, we have no control over other market factors influencing stock prices.
Our firm's policy is not to be involved in any stock trading activities or programs of other investor awareness firms, telemarketers, consultants, large shareholders, companies or any investors. (See our Disclaimer on our website and in our reports).