Your article seeks to cast me as an "online penny-stock scam artist" ("The hustlers queue up on the Net," Finance, Nov. 20).
Let me set the record straight.
My Global Markets newsletter is not focused on penny stocks. If the writer had taken the time to have a look at my "current portfolio," he would have seen that 7 of the 16 companies have market capitalizations exceeding $100 million, including four exceeding $500 million, and an additional one at nearly $6 billion; only three could be considered "penny stocks."
In singling out Quigley Corp., I can only say that I am very pleased with the progress that has been made by this "penny stock" since the time that I recommended it. They are just now turning the corner to profitability after several years of research and development.
[As for the quote that suggests I ask companies to sponsor my newsletter,] after an issue is printed and mailed to my paid subscribers, a copy is then sent to the recommended companies. Rather than sell reprints, I prefer an arrangement whereby they simply pay for the postage of a mailing to prospective subscribers at my end, in exchange for earning the right to make reprints at their end for free. This kind of "cooperative advertising" has been around for years. Whether or not they take advantage of this opportunity has no reflection on their being recommended, because my paid subscribers have already received their copies and my primary interest is seeking capital gains for them.
Excluded was the fact that online investors accessing my web site can download a free directory of several hundred Internet sites. Their content varies, but, contrary to the writer's conclusion, most of the recent new sites have been set up by well-respected financial institutions.
Richard A. Sauers
Editor's note: BUSINESS WEEK believes the quote attributed to Sauers accurately reflects what he told our reporter.