Sam, I agree with everything you said except for this:
>>>1. I hope they learned their lesson about dropping a bombshell (lawsuit) same time they released.If they would have waited until a time when nobody was looking for earnings release they could have squashed it some.<<<
If I remember correctly, RSYS management didn't PLAN to drop the bombshell on the conference call. The information was elicited in response to an analyst's question. I may be wrong, but my take on it was that RSYS stock was pummeled excessively because of the nature and timing of the disclosure.
Analysts and money managers -- i.e, the guys and gals who, unlike me and you, move the markets -- don't like secrets. They're generally pessimists like Burt, so they say to themselves, "Jeez, if management didn't tell us about this one, there must be other stinkers that we don't know about yet that they're trying to hide."
The upshot is that companies are generally better off laying out all the bad news as soon as it rears its ugly head instead of keeping it hidden. In the case of RSYS, we would all have been better off if management had disclosed the SEC investigation the minute they learned about it, rather than waiting to be asked.
Burt: That "pessimist" crack was my feeble attempt at humor. |
