Techno corporation is our top pick for the investment this term. We urge all our clients to invest in this new company. For the first time in ten years, a company that has developed a stellite technology has been approvd by the FTA to compete with current

The author of the newsletter is advising its clients to invest in Techcorporation as it is their top pick for investment. The author states that it is the first time in 10 years that a company has developed a satellite technology that has been approved by FTA. The author also talks about a survey taken a year back which showed that 80% of the consumers are dissatisfied by their current satellite provider. However, in the newsletter, the author states some assumptions which cannot be trustworthy.

Firstly, the author urges its clients to invest in Techcorporation, a novice satellite provider. The investors are uneducated about the company and its way of working. For people to invest in something they need to know what the company does and how it does what it does. Adding to this, the company being a at the initial stage, will have to start from installing connections to getting customers to switch from their old providers to the new one. Therefore it will be long till we see the company to be well established and ready to compete. Thus, to state that it will be highly profitable for those who invest now is like finding a needle in a stack of hay.

The author talks about a survey taken a year in the past. Firstly, the survey was taken a year back and a lot of changes take place over a period that long. The current satellite provider might have corrected the error and the customers might have been satisfied with their service provider and would not want to switch to some other new service provider.

Moreover, considering that the current satellite provider did not act on the error, the survey states that 80 percent of the customers are dissatisfied by their current satellite providers, but cannot switch because of monopoly. It is assumed that the information is collected by surveying an even distribution of customers. But if the survey was carried out majorly in the rural and remote areas which do not receive proper signal due to weather conditions, then it cannot be ascertained that the new service provider will be able to suffice the need of those people.

However, the author does not talk about the area that will be covered by this company. Also there are chances that the other satellite provider might improve its service and also provide a cheaper service to compete with the upcoming company. A small dip in its profit will not affect an established company as it would to a new company. Hence, the probability of success for a new satellite provider is quite low.