No. of Recommendations: 2
Hi Bear,

Sorry for the late response. I've been out of town.

But the sector it's in and the competition it faces are paramount considerations when considering the prospects for the business.

This is a great question. I'm not entirely sure I agree. Competition is certainly important, but we've all seen a lot of rule-breaking, upstart companies succeed in the face of massive, and sometimes deeply entrenched, competition by taking a fresh and disruptive approach. They don't always succeed, of course, so there is a question of what traits tend to make the difference. That would be a fascinating discussion.

From a practical perspective, though, I only had time to analyze one company. Again, the purpose isn't to invest, but to get practice with analysis. I certainly agree with you that analyzing other companies in the sector would be a great idea for someone looking to invest in the sector.

I'm not sure why you say in one breath that you aren't positing that TUBE is a good investment, and in the next that you liked what you saw and rated it highly.

The hypothetical score simply allows me to go back later and easily evaluate my conclusions so that I can look for weaknesses in my process where things have gone wrong. It provides measurability at a glance. Maybe one of those weaknesses will be a lack of focus on the competitive landscape ;-)

As you've pointed out, I haven't done nearly enough work to evaluate it as an actual investment.

Neil
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