When I first warned that speculative App company Resapp Health Ltd (ASX:RAP) was a bad investment, the response was phenomenal.
Let me be clear. I did not want the company to crash. I perceived that it likely would — and that the money investors were investing in it, would not pay off.
I won’t single out the individuals involved, but they ranged from anonymous internet trolls abusing and defaming me, to my own friends, who questioned why I would bother to criticize a company that was only trying to help.
Today, friend, you have your answer. I wanted to protect my readers from a massive loss of capital. I could have just kept quiet, but when I saw people on twitter advising others to “bet the house” on ResApp, I felt the need to speak up.
Look what has happened now that ResApp has finally admitted that, “Preliminary analysis of study data shows predefined endpoints for positive percent
agreement and negative percent agreement with clinical diagnosis are unlikely to be met.”
I said in my original article, unambiguously titled: How Far Will ResApp Health Ltd Crash?
As an asthmatic I have been diagnosed once in my life but seen doctors about it very many times. Indeed, over in the US asthma patients must go to a doctor just to get an albuterol inhaler. The idea that society would spend money on an smartphone app to diagnose asthma, when there is so much waste in getting asthma treatment (once you already know what you need) is very sad indeed.
In my view, the huge loss of wealth today is a tragedy. Anyone who encouraged people to invest their hard-earned in this company should take a moment to reflect. How could that money have been better spent?
I won’t hold my breathe waiting for apologies from the dozen or so “investors” who abused me when I warned them to avoid ResApp. But I would like to say thank you to my employers, and the many friends in the investing world, who supported me at a time when I felt vulnerable (having received threats). It’s a thankless task to warn of over-hyped companies, and you made it bearable. And trolls, be warned. You won’t shut me up.
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Motley Fool contributor Claude Walker does not own shares in any of the companies mentioned in this article. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.