The “Echo” Chamber

The “Echo” Chamber

According to Wikipedia “In news media an echo chamber is a metaphorical description of a situation in which information, ideas, or beliefs are amplified or reinforced by transmission and repetition inside an “enclosed” system, where different or competing views are censored, disallowed, or otherwise underrepresented. The term is by analogy with an acoustic echo chamber, where sounds reverberate.”

Diabetic Investor defines an echo chamber as any company that issues more press releases than products in the field. This is a common occurrence in the wacky world where many smaller lesser known companies seem to believe that the more press releases they issue the more attention they’ll get. The general belief is all this attention will also bring in money. As we have said many times when it comes to this wacky world it often comes down money, who makes it and who spends/invests it.

It should not come as great surprise that companies in the non-invasive glucose monitoring space, in the old day’s point to point now reinvented as continuous, are big fans of the Echo chamber. Yes, these companies which have been absolutely outstanding at bilking investors out of millions of dollars but have yet to get a system through the FDA let alone onto the market just love to issues useless press releases. We should also note that besides having a fondness for issuing press releases these charlatans also have very pretty web sites.

Now one just might think that investors would see through all this horse manure and stop investing money in these companies whose lone goal is to make management rich. Listen we’ve been covering this wacky world for nearly 20 years now and we are continually amazed at the stupidity of investors. Frankly we have no sympathy for any investor who is too lazy to perform even the slightest due diligence.

The funny thing is individual investors aren’t the only ones who have exhibited the ability to ignore the obvious and make mindless investments. GE, yes that GE, invested $8 million in the now defunct C8 Medisensors, a company that had everything expect a real product. But GE isn’t the only major company to have lost millions and yes we mean millions, chasing this elusive dream which in reality has been nothing but a nightmare for investors, large and small.

Yet investors large and small aren’t the only “intelligent” people who have been duped by these snake oil salesmen. Yes, several very “intelligent” diabetes bloggers like investors fell in love with the story and forgot the old adage; “If something looks too good to be true, it probably isn’t true.” Or as Momma Kliff was fond of saying “If it walks like a duck, squawks like a duck it’s a duck no matter how you dress it up.”

At this point many just might be thinking that something prompted this post and they would be right. However, we will not mention the company that issued the press release that prompted this rant. Let’s just say the smart folk out there will figure it out and the rest will invest in the company. The fact is this company along with many others do not deserve the attention. Therefore, Diabetic Investor will no longer give them attention they crave.

Frankly we think it’s about time that everyone takes a pledge when it comes to these criminals – “We will no longer give these crooks the attention they seek. We will expose them for what they really are, professional swindlers.  Under no circumstances will we invest in these criminal enterprises.”