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As a sell-side analyst in recent years, I followed L-1 Identity Solutions (ID), which is involved in a range of ID programs from driver's licenses to facial recognition software. Trouble is, management simply couldn't resist the urge to promise too much. They were one of a number of management teams that had built a reputation for "overpromising and underdelivering."
So what do you do if you like the business but can't believe management? Sit and wait. In time, you can acquire stock in such a company at a greatly reduced price, usually when most others have thrown in the towel.My colleague Steve Gear wrote
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