Wednesday, January 07, 2009

emerging backyard markets

via jefftrexler, a reader of Gifthub. Do not know if Jeff is somehow related to W. Trexler Proffit in the story.
LanX would be for small- and medium-sized companies — like restaurants and clothing stores, for example — that aren't large enough to use venture capital or angel investors, let alone make it on the New York Stock Exchange or Nasdaq, Proffitt said.

As an investor, "you get a say but you don't get a controlling say," he said.

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Anonymous Kent said...

Where's his research? It would be nice to see his data, his analysis, his assumptions and read every word of the original work that he was paid $10,000 to produce. I wonder how he addresses the many serious flaws in this idea.

1/07/2009 8:00 PM  
Blogger Tom Matrullo said...

Yes, a lot of questions. I don't think the Times got into all that either, Kent.

1/08/2009 1:05 PM  
Anonymous Kent said...

For a Journalist or news organization not to provide links to the original research is criminal. Their shallow reporting and crappy dissemination of the facts enable the Bernie Madoffs of the world to thrive. The regulatory function should be open-sourced and entirely transparent. How can individuals analyze financial endeavors to determine their validity with information that's slightly more than zero and filled with murky fluff.

1/08/2009 3:32 PM  
Anonymous Kent said...

Random Thought 1. The first problem I have with this idea is the issue of "trust". I'm attempting to recall the discussion surrounding blogging regarding whether or not a person places more credibility in a circle of "neighbors" defined by geographic boundaries versus a circle of virtual "neighbors" defined by some other criteria. 1.1 For example, I trust you -- the person I know as Tom (author of this blog) more than 90% of the people that live within 2 miles of my house. 1.2 Canadians don't lock their doors, so, I'd probably trust a random Canadian who happened to pass by my neighborhood more than a random citizen from my state.

Random thought 2. An investor incurs more idiosyncratic risk by investing close to home than by holding a diversified portfolio. For example, let's invest in all our friends' businesses in New Orleans the day before Katrina hit. Gee, other than being totally wiped out (stemming from the risk of being located in a specific geographic region), they'd have been super great investments.

I've got about a dozen more thoughts, many of which are probably addressed in the original research, wherever that is.

1/08/2009 3:51 PM  
Blogger Tom Matrullo said...

It's an interesting and off-beat enough exploit that it spurs many questions, for sure. It seems that "journalism" is sufficiently parched, dried, and hung out to rot that it can only gesture feebly at something out there that may or deserve more serious attention - may not - with what we have thus far, dunno.

1/08/2009 8:48 PM  
Anonymous Kent said...

This really intrigues me. I've sent an email to a local Lancaster journalist and the F&M professor who conceived the postulate. I'll follow up here if I can get links to more data.

1/08/2009 10:20 PM  
Blogger Tom Matrullo said...

Great - thanks Kent.

1/08/2009 11:44 PM  
Blogger Jeff Trexler said...

We're possibly related in some way, but quite distant, and we've never met. The Trexlers arrived in the area around 270 years ago, so there are a lot of branches to our family tree!

1/09/2009 11:44 AM  
Blogger Tom Matrullo said...

Thanks Jeff - I've been out that way and visited the college a long time ago - nice there.

1/09/2009 12:47 PM  
Anonymous Kent said...

Potential role models for the projects are National Stock Exchange of Australia (NSX) and InvestBX exchange. I've just started rummaging around to find more links on the topic and am tagging them at Delicious with "lancasterstockexchange", fwiw.

1/18/2009 1:45 PM  

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