Once again it's time to welcome Neopia's leading financial experts. Dropping
in to visit our hosts will be Unis Salon President Fabiana Kotzencraft, who'll
be here to discuss the drastic effect that sudden changes in the market have
had on her company. And now, here are Neil and Maria…
KAUVUTO: Hello and thank you for joining us here at The Neo-Market Report.
I am your host Neil Kauvuto, and as always I am joined by my co-host, the one
and only Maria Blumaroono. Tell us Maria, what's the latest word from The Street?
BLUMAROONO: Well Neil, after the Neopian Securities and Exchange Commission
(NSEC) announced that it was going to launch an investigation of Techrobatics
Fitness Videos, shares of the company plummeted within a matter of minutes.
However, the shock of Techrobatics' sudden demise was short lived, as bargain
hunters dived in to cash in on the panic, driving the stock's price back up
to around 150 NPs a share within a matter of days.
But just when investors thought that the panic was over, NSEC chairman Lupevitt
held another press conference on Tuesday, announcing that preliminary investigations
had not only turned up irregularities surrounding Techrobatics Fitness Videos,
but that violations had also been discovered in relation to Unis Beauty Salon,
The Presidential Palace, and Cybun Electromatics. Chairman Lupevitt's statement
was followed by a stern rebuke from Neopian Reserve Chairman Arvid Grundospeck,
who blamed the current sorry state of the Neodaq on the speculating scammers
who inflated the stocks' values and "the parasites that sought to cash in on
Techrobatics after Friday's announcement."
In the days since the announcements by Lupevitt and Grundospeck, it appears
that investors have taken their words seriously. As the share value of companies
such as The Presidential Palace and Cybun Electromatics declined sharply, the
rest of the market has showed a remarkable burst of growth. Leading the way
for those posting gains this week was Neopian TV Channel One, which reversed
the losses that they had taken in the two previous weeks by shooting up a whopping
seventy points a share. Others making impressive showings included Yippee!,
which rose fifty-four points, The Neopian Auction House, who saw shares jump
forty-nine NPs a share, and the long-suffering National Neopian Bank, whose
shares went all the way up to sixty-two NPs a share.
KAUVUTO: Thank you, Maria… joining us today is the President of the Unis Beauty
Salon, Fabiana Kotzencraft. Fabiana, thanks for making the time to stop by.
FABIANA: Oh Neil, I wish it could be under better circumstances, but nevertheless
I'm still glad to be here.
KAUVUTO: Now, we've all seen what's happened in the past week, as investors
abandoned the stocks that got caught in the tangle of the NSEC's investigation.
Could you give us your perspective on what's happened?
FABIANA: Well Neil, I know that there's no point in getting worked up over
what's happened. But the fact is that a few irresponsible investors chose to
buy shares in our company, and now that they've been caught we're the ones paying
the price. Am I the only one who realises how unfair this is?
BLUMAROONO: Granted, but you must understand that these "irresponsible investors"
were instrumental in building the hype around your stock, causing it to reach
such a high value, correct?
FABIANA: I suppose that, in retrospect, these investors caused our stock to
become overvalued. But even though our company might not have been worth five
hundred NPs a share, it's certainly worth a whole lot more than what it's going
for now. Mark my words; stock in Unis Beauty Salon won't be fifty-two NPs a
share for long…
KAUVUTO: So you think that investors will abandon the "smaller" companies that
they're supporting now, and eventually return to powerhouses such as yourself
FABIANA: Oh, I'm certain of it. Despite the problems that we're currently facing,
everyone knows that our companies are proven moneymakers. I have the utmost
confidence that investors will recognise a bargain when they see one.
BLUMAROONO: Well, that's about all the time that we have for today. For Neil
Kauvuto and Fabiana Kotzencraft, this is Maria Blumaroono saying thank you and