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Technology Stocks : SOFTKEY=MERGER MANIA

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To: Craig Johnston who wrote (905)3/14/1997 12:21:00 AM
From: Thomas C. Donald   of 966
 
Questioning "facts and figures" ...

If you make a habit of shooting messengers, you won't get very many messages. Let's just evaluate the information and act accordingly.

Paul certainly predicted the price decline of TLC correctly. Perhaps, however, the price did not fall because of the reasons Paul cited. There are often assessments based on wishful thinking which are justified by citing impressive facts. (eg. "The market will be strong today because of ...") The prediction that a stock's price will fall may be enough to itself make the price fall, especially if echoed by enough people and justified by enough complicated things that are poorly understood by the average investor. Paul (and possibly everyone else) may have simply been echoing a contention he had heard that seemed plausible and adding some observations he had made that seemed consistent with the contention. There is no evil in this. Its human nature.

However, if the management at TLC had been listening to such speculations and had taken action to debunk irrelevant "facts" and to clairfy issues relating to facts which were being twisted to support detrimental predictions, then we would not be in the mess which currently exists. Perhaps a new Director of Investor Relations is needed, as has been suggested. This person should be plugged into idea exchanges such as Silicon Investor and not wailing about wild rumours on the internet.
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