Forum Archive Index - November 2001

[Phaedrus <Phaedrus@techemail.com>]

 Blue Chip Software Corp changed its name to Tomato Technologies in October 
2000. In September 2000, the company purchased 100% of Micro Corp in exchange 
for 1,778,000 shares in Blue Chip. The company received attention in December 
when the Australian Financial Review wrote an article citing "ethical and 
accounting anomalies" in its prospectus. According to the ASIC, the Tomato 
prospectus contained: "a number of issues that need to be clarified" including 
"inconsistencies in its prospectus" Consequently, the company directors were 
given a "please explain" from the ASIC. One of the issues was that the ASIC had 
denied the company an investment adviser license which was mentioned in the 
prospectus. The ASIC denied the license request on the grounds that "the 
contractor which had been engaged by the company did not hold adequate 
qualifications for the activities proposed to be conducted under the license." 

This software has been discussed before on Sharechat - access it using the 
Search function.

 It is almost impossible to evaluate these programs without actually buying 
them. All figures given supporting their claims of high returns are simulated. 
I had a look through their online demo, and it looked like just another black 
box with some flashy frills tacked on. Their charts are heavy on fancy visual 
effects such as 3D perspectives, but are light on indicators and other 
functionality. Much emphasis was placed on the ability of the program to 
backtest systems and scan the market for buying opportunities. Any reasonable 
charting software does that (and a lot more) for a small fraction of the price 
of Blue Chip Trader. (about $6400)

 Read these two excellent articles about "Black boxes" :-
http://www.stanz.co.nz/education.htm#articles  
http://www.ataa.com.au/a_cn_comp_trd_.htm

               Phaedrus.

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