How many of us hate getting the mail these days? Takes forever to search through the junk to get to the really important stuff, like the new Jokes 'R Us catalog. All those advertisements, flyers, and "You've won a million bucks!" contests! With all the concern over our diminishing forests, it makes you wonder where the Greenpeace police are during this paper raid!

And if you're an investor, and you've ever subscribed to an investment publication, then you've entered a whole new realm of insanity. You've probably joined me in newsletter purgatory.

Ever notice how they all say the same thing? "Make fantastic earnings while watching the market crash!" "Increase your net worth a thousand fold in just 3 months!" "Take a look at the stocks I've recommended! 546% in just 2 weeks! 1247% in just 6 months!" "If you'd been following my picks you'd be a millionaire by now!"

Oh, please. And this is where our trees are going?

I've been receiving every imaginable ad for every conceivable newsletter for years. I've even checked out a few. Got my money back real quick. The one common denominator I've found is the lack of current stock predictions. Every stock they tell you about is old news. Every "correct" prediction they've made has been years past. Yet, when they try to get your attention, it's with hints, innuendoes, and possibilities. Is there no one out there willing to show me something for right now?

When reading these newsletters, whether they claim some unique system for picking winners, or whether they claim to be able to "time" (yeah, right) the market, notice how they won't offer up anything you can actually track for performance before you subscribe. And keep close watch for the cost of these newsletters. I can't think of a better term to describe what they attempt to do to your checkbook balance than rape.

Another amazing thing they do is assume we're already rich. Did you notice how they always say "If you had invested just $10,000 in Newsletters Unlimited (ticker: SCAM), you'd now have over a million dollars"? How many of us have $10,000 lying around to throw into some stock that Joe Hype has recommended?

If you really want to try your hand at picking potentially explosive new companies, let's go about it the right way. Read the news. Read the publications like Popular Science, that let you know of new technologies, or new medicines. Search for all the information you can find on any new company you're interested in. Try to get a feel for how well the new ideas will be received by the consumer. Then, check out the financial standing of the company. Can they afford the necessary research and development? Are they putting a fair amount of money into it? Can they remain financially sound while they wait for FDA approval or the completion of the manufacturing of a product? Is their product marketable? Cost prohibitive? Already being manufactured by some bigger name company? Who are their competitors? Can they compete? Can they afford to try? How many failures have they had? Do they show a willingness to scrap a bad idea rather than throw good money after bad? How about management? Are they forward thinkers? Innovative? Well-schooled in the running of an up-and-coming company?

There is a great deal more to finding new companies with outstanding future potential than reading a newsletter, and believing Joe Hype. Looking for the path out of newsletter purgatory? Just follow the yellow brick road to research. With good research and a little hard work, that yellow brick road could very well be paved with gold. But, you can bet Joe Hype never picked up a shovel. To find buried treasure, you have to do a little digging. And those newsletters can serve a very good purpose. Put them on the ground to keep your knees from getting dirty.

Fool On!

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