Sir, - Eircom shareholders, please take your present plight on the chin. A mania arose in May 1999 which turned many Irish people into greedy egocentrics. Rumours abound of people obtaining multiple allocations through relations and immediate family. Stockmarket experts sprung up in every pub and street corner. These so-called experts forgot to mention that you must suffer the losses as well as participating in the profits. In this case, greed is no good!
Uniquely, the Government deserves no criticism. Caveat emptor! You wouldn't buy a car from a previous owner without checking under the hood. How many existing shareholders reviewed the levels of customer service Eircom provides? Recall the lessons of history. Dare I mention speculation on Irish exploration companies in the 1980s? If you don't know the patsy, you are the patsy. You should not invest unless you can emotionally handle short-term quotational losses.
On a more positive note, the stock market is a voting machine and not a measure of value. You only lose if you sell at a depressed price. You wouldn't sell a property which you bought in July 1999 because you are offered half the price you paid for it. The stock market suffers from manic depression. In six months a euphoric stockmarket may completely overvalue these shares, particularly as this company actually and unfashionably makes profits. Most telecom companies do not. This mere fact cannot be ignored indefinitely. Warren Buffett's words resonate: "Be greedy when others are fearful and fearful when others are greedy."
The real winners are First Active's management, who have neatly slipped out of the spotlight despite reporting less than impressive results recently.- Yours, etc.,
Rory Healy, B. Comm ACA, Saint Agnes Park, Crumlin, Dublin 12.