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argument15 The following appeared in a newsletter offering advice to investors.
"Over 80 percent of the respondents to a recent survey indicated a desire to reduce their intake of foods containing fats and cholesterol, and today low-fat products abound in many food stores. Since many of the food products currently marketed by Old Dairy Industries are high in fat and cholesterol, the company's sales are likely to diminish greatly and their profits will no doubt decrease. We therefore advise Old Dairy stockholders to sell their shares and other investors not to purchase stock in this company."
正文:
This argument is the advice to investors. The author advises Old Dairy stockholders to sell their shares and other investors not to purchase stock in this company. In order to successfully advise those investors, the author provides evidences of the survey and assumption on reducing profits and sales. However, after close scrutiny, we find that those evidences lead little support to this advice.
First of all, the survey is incomplete. What kind of the respondents are? Will the respondents be representative? The advice says that over 80% of respondents are willing to reduce their intake of foods containing fat and cholesterol. Maybe only women who are experiencing on losing weight, the old people and fat males answer the survey, because they are more likely to advocate the contents of the survey and concern about such survey. However, what the percentage of such people?It is not mentioned by the author. For left people who do not respond to the survey, if they can occupy majority of the whole number of people, such as 70% of the whole people, the respondents are only 30% and those willing to reduce fat foods are even smaller too. Therefore, this survey is too vague to prove that there will be most people of the country refusing to intake foods containing fats and cholesterol.
In the second, the author fails to convince us that the company's sales are likely to diminish greatly and their profits will no doubt decrease. Firstly, for 'many' we do not know the detailed number. Maybe those foods are only in 20% of all the foods produced by the company. And, the left 80% foods do not contain those terrible elements. Thus, even if the sales of the foods including fats and cholesterol actually decrease, there is no evidence that the company's sales are likely to diminish greatly. It is because sales of other kinds of foods can increase since people change to buy those foods instead of fat foods. Moreover, under these conditions, the profits’ reducing is also unreasonable. In addition, profit are determined not only by sales, but also by other aspects such as costs, price etc. Therefore, author's assumption is unfound.
In the third, granted the company's both sales and profits decrease greatly, the shareholders do not need sell their shares and investors stop to buy company’s shares. Whether sell or buy the stocks of the company or not is determined not by the current sales and profits alone rather than by this company's planning, its managers' abilities and future’s profits and interests. Maybe the decreasing situation is temporary because the company's CEO is changed a few days. The new managers and planning can improve the company's very fast. Or, the present situation is the turning point. This company actually has great potential to make profits in the future, which is the investors’ crucial reason on selecting this stock. Thus, the advice to select sell or buy stocks unfound with this evidence.
In conclusion, this advice is unreasonable. The author should provide more detailed elements to prove that the company is confronted with difficulties from markets, employees and top managers and will bankrupt in the future. Thus, the investors are willing to sell and stop to buy the company’s stock. |
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