FROM RB: By: telcom_guru
Reply To: 49975 by continuum
Sunday, 6 Feb 2000 at 1:56 PM EST
Post # of 50020
More on Press Releases.
IDC has provided worthy press releases, each of which has positively
affected the perceived value of the company. See
interdigital.com for a recent list. When there is
something to say, it is said. There is much that cannot be said. A
constant barrage of press releases with no new valid news could put
IDC's investors at risk.
1. It is highly probable, and the Company has indicated, that IDC's
confidentiality agreements with its partners restrict IDC from releasing
information regarding what it is doing for or with each.
See message 47252
ragingbull.com
re IDC and AT&T deal. The wisdom behind saying little is also
exemplified in this article.
Secrecy is imperative to manufacturers until they are ready to hit the
market with their latest product. The hope of all mfrs. is to beat its
competitors to market with a product built on an idea they believe and
hope will win and one of which their competitors had not thought. IDC's
partners are all operating in a highly competitive market.
2. Manufacturers of finished products simply do not waste their time
talking (in words or print) about all the contributors of the parts of their
products. There would be no room to talk about their own products and
achievements.
Look on your mother board, open up a phone or radio and etc.. You'll find
lots of names on the various parts inside, and you can't even see all the
IPRs used to comprise the finished product. The companies that do the
touting are the parts makers. (Intel & BASF are the "parts" makers that
tout the best.) IDC is a part of, not the whole, finished product. IDC and its
investors are probably the ONLY ones who think IDC's part is of utmost
importance.
3. IDC is in the midst of litigation being handled by extremely competent
attorneys, who have certainly advised IDC to say as little as possible. A
simple utterance can be twisted and turned by the opposition into its own
ammunition. Therefore, the less said or printed, the less potential bait for
ERICY's attorneys to use and misconstrue.
Many companies just don't know what may or may not be said, hence,
nothing is assumed to be the best choice. Quiet periods are a perfect
example of this.
4. A continuous stream of press releases that provide no new news can
ultimately have disastrous effects.
If the stock soars as a result, and then sinks for whatever reason, the co.
could ultimately have a more difficult time climbing up again. It could also
be hit with class action suits provided by law firms that thrive on such
suits (if they can find anything to misconstrue into having mislead
investors.)
Such empty press releases can more easily be construed as hype and/or
present an appearance of desperation, or it could provide fuel to
journalists who might question in print the possibility of hype vs.
substance. These could lead investors to sell or wait even longer to buy.
A stock whose price appears to have risen too quickly from hype can fall
quickly by the same amount for any reason. (We are there and doing
that.) Any number of occurrences in the market or in the world, in a day,
cause stock prices to plummet. Typically the market sells first, and ask
questions later. The perceived value of IDC grew to the high 20's as a
result of the release in Nov. of news of value, which was finally seen and
interpreted as such by more than its core investors. (We'd known for
many weeks that the patents had been revalidated.) It then spurted to 80+
on hype, hope and the coattails of the market in December. It has settled
back (as have most all the tech stocks) into the 20's in January.
The company releases news when it believes (see note to Continuum
below) it has news of value to release that it may release. Rather than
hope for more press releases, hope for more good news that can be
released! If nothing comes before, in just 4 more days we will have news.
Pray that it is good! Press releases to pump up the price of the stock is
not building value in the stock. True value takes time to build, and more
time to be recognized and rewarded.
Continuum, your point below is one that seems to be valid and a good
idea. So, why don't you call the Company and ask Rip about it? The
Company is not closed to good ideas. As QCOM has brought to brighter
light the importance of IPRs in this industry, (and for many other good
reasons) this is a good time for IDC to follow through with your
suggestion. I'd be interested in knowing Rip's response.
"2. IDC has been awarded more than a dozen new patents in 99. Why is
this announced with just a NUMBER at year end? What are the patents
anyway? Why not make a release AT LEAST for the more significant
ones AS THEY'RE AWARDED? It may not be a common practice for all
companies. But then again, IDC's patent-based business model is unlike
most others."
tg |
