Baird
The company is terrific when it comes to its operations and forward planning. It's awful when it comes to investor relations and investment PR. It lets its stock get yanked around by off-the-wall negative comments by brokers and the media without a peep.
It could learn a lot from Microsoft in that area. When The Wall Street Journal said Microsoft would not release WIN 97 this year, Gates himself did damage control. MSN is a total disaster; yet the company inundates subscribers (and investors) with press releases as to how great MSN is going to be with the "new improvements now being made."
I agree with Mike Farmwald. The longs are selling, and they're selling because most of them (and, their brokers) didn't even know what business the company was in when they bought the stock. When the stock price was skyrocketing, that didn't matter. Now, that an investor has to become a "partner" in the business and wait for long-term results, those uninfromed longs are chickening out. (The volatility of the market isn't helping; the longs are scared in general.) RSYS doesn't have an Office 97 that an investor can unwrap and install on his computer to quell any fears and lift his/her spirits.
Maybe the company is right in not caring about the fluctuations in its price short-term. There aren't enough of us shareholders out there yet for the company to give a damn whether or not we're nervous. And, consider this: while the stock is in the toilet, Intel, Techtronix, et. al. aren't going to be sellers.
Also, the real money in Radisys is being made by the specialists in the stock. Just remember that a specialist's profit is made on the spread between the bid and asked price. The NYSE starts investigating as soon as the spread in a stock is more than 1/4 of a point. Yesterday, the spread in Radisys was 1/2 to 3/4 of a point most of the day. At several times during the day it was over a point! That scenario has been true for Radisys for a lot of months now without NASDAQ questioning the specialists.
Burt |
