"The following appeared in a newsletter offering advice to investors: "Techcorporation is our top pick for investment this term. We urge all of our clients to invest in this new company. For the first time in ten years, a company that has developed satell

The argument presents a specious line of reasoning. It does seem reasonable that investment in the Techcorporation could benefit prospective investors. However, the information provided is insufficient in convincing me as a potential investor in endorsing the new company. There remains many unanswered questions in the premises provided.

First, I question the motivations behind the investment firm. Stating that Techcorporation is their top pick for investment, it begs the question if there are any other associations that the higher-ups of the firm maintains with the new company or any other conflicts of interest given the vague endorsement. For instance, the CEO of Techcorporation could be the relative or colleague of the management of the investment firm. Further, the CEO of Techcorporation could be a member of the investment firm's upper management. Therefore, to establish credibility, I would ask the investment firm to divulge any information regarding and pre-existing relationships with Techcorporation and itself.

Second, the consumer survey, though convincing, fails to thoroughly demonstrate that consumers will switch their current satellite television service to Techcorporation. Citing that eighty percent of respondents were dissatisfied with their current satellite provider it begs to questions whether these respondents are dissatisfied with satellite television generally. If so, consumers will likely not jump-ship to another satellite provider, and rather, these consumer may switch to cable television services. Thus, my second question would be whether these respondents were asked if they would switch services to another satellite service or if they would seek another alternative.

Third, possibly the most blatant insufficiency to the information provided, is in demonstrating what the Techcorporation satellite service has to offer that makes it more attractive to consumers that their current satellite services, assuming that the answer to the second question posited is indicates that current satellite users would switch to another satellite service rather than an alternative television service. If the service that the Techcorporation provides bears a striking resemblance to the current satellite television provider or if the Techcorporation offers less features at the same cost as the current satellite television provider, it is reasonable to question whether consumers dissatisfied by their current satellite television would inquire to change services simply because it is an alternative satellite provider. Thus, I would ask investment firm what the new satellite service offers that the current satellite service does not, that will engender consumers to change services to Techcorporation.

The questions I would posit, would undoubtedly elicit additional follow-up questions. In doing so, as an investor, I would be more likely to place personal stake in my investment once all pertinent information is divulged.