Horror message

Horror writer Stephen King’s decision to publish his latest novel, The Plant, only on the Internet at $l chapter, has disturbing implications for investors, says UK’s Investors Chronicle. It shows that in the new economy, many firm’s assets are less secure than they believe.
In the old economy, firm’s assets were fixed in plant and machinery, but today they increasingly consist of brand loyalty and ideas.
Not only are these assets intangible but they may belong to employees or suppliers rather than the company itself. In King’s case, he has brand loyalty, and not his previous publisher.
The lesson for investors is not to avoid the new economy stocks, but to satisfy themselves whether the growth options priced into them are really owned by the company at all.