The following appeared in a newsletter offering advice to investors."Over 80 percent of the respondents to a recent survey indicated a desire to reduce their intake of foods containing fats and cholesterol, and today low-fat products abound in many food s

The writer of newsletter recommends selling Old Dairy shares and avoiding buying them. This recommendation is based on writer's belief that Old Dairy profits and sales will soon decrease dramatically. This conclusion and suggestion are based on evidence which ought to be carefully questioned in order to give a comprehensive estimation of the soundness of the argument.

The first evidence which is given to us is that a recent survey has demonstrated that over 80 per cent of interviewed respondents want to reduce their consumption of food which is high with fats and cholesterol. However, we are not given any information about the survey. The likeliness exists that the sample of the study was too small or it was conducted in one region but its results are extrapolated unreasonably wide. Moreover, the purchasers of Old Dairy's products may not be included in the sample. In this case, the usage of the research seems to be unreasonable; however, even if we accept the result of the survey for granted, the desire to change habit does not always lead to the wished behavior. These 80 per cent may honestly want to reduce their intake of foods containing fats and cholesterol but this desire may not become reality and a broad available assortment may not lure these respondents from eating tasty food which is full of fats and cholesterol.

The second evidence which is shared with us is that many of Old Dairy Industries food products contain fats and cholesterol. However, many do not mean that all products of the company possess these characteristics. Perhaps, some of them, which bring the main share of revenue, are low-fat products. Consequently, arguer's statement that company's proceeds and sales should diminish seems to be unreasonable.

Finally, the author claims that company's shareholders should sell their shares and other investors should abstain from buying company’s stocks. However, the writer has failed to prove that future of the company is under threat. Moreover, even if his or her estimation of the future of Old Dairy Industries is correct, many other unstated factors impact on such decisions. The overall economy trend and expectations of other investors should be taken into consideration. What is more, the Old Dairy may made some actions which may drastically reverse the current trend, for instance, the change of the CEO, management or company's policy etc. Therefore, the information given by the writer is insufficient to draw a thoughtful decision about actions with Old Dairy shares.

In conclusion, the argument states that stockholders should sell company's shares and other investors ought not to buy company’s actives. Unfortunately, the writer does not manage to create a solid foundation for this conclusion and evidence used by the originator may be explained alternatively. Consequently, the recommendation seems to be unwarranted.