Ugly speculation regarding INTF
Let me begin by saying that I am quite disturbed and, frankly, a bit saddened by the speculative accusations being posted on this board. I will now address directly some of the issues raised, in no particular order:
It has been implied that this was some sort of premeditated "pump & dump" scheme orchestrated by David and me. Well, folks, whether you think we were overly enthusiastic or not is up to you. However, there was simply no dump. Period. We still believe wholeheartedly in INTF's products and their business model. Most assume Legacy-to-internet transformation is easy to do and dismiss the value of a canned solution because they do not understand it. While many companies can do it in-house, it is simply too expensive and time-consuming. An analogy can be drawn with a dog house. Anybody can build a dog house, but everybody seems to buy them.
The disclosure at the end of my Hunt report was to indicate that I had purchased shares of INTF. I felt that it was simply not ethical for me to hold shares in a company on which I was about to issue a favorable report without proper notice. I still hold every one of my shares. I even bought more on the way down.
Anyone who doubts the veracity of the events surrounding my hiring by David should feel free to contact me and I will answer any and all questions that you have.
Most of you have undoubtedly seen the revenue projections in the CSI INTF report. These projections fully justify our price target. Those numbers were supplied in early March directly by Bob Nero, CEO of Interface. The fact that they missed their own projections and failed to provide additional guidance to that effect is not any fault of ours. Of course, Bob also told us directly that he would split the stock between 45 and 50 and then did not.
If you felt that the conclusions of my report did not follow from the facts contained therein, you should have responded at the time with specific points. Saying, "I told you so" after the fact with no supporting detail shows nothing but poor taste.
We have always openly declared our identities and position. (Now that I think about it, how many P&D artists file a 13-G?) We have also encouraged anyone to contact us at any time. Many have done so already and the offer still stands.
I seem to recall that the Gorilla Game is a long-term investment strategy. Success or failure is measured over periods of three years or more. There is a good reason for this. Nobody can predict the short-term fluctuations of the market as a whole, much less for low-float thinly traded stocks like INTF. Such stocks are subject to influence by forces beyond traditional market forces. These include magnified effects from margin liquidations, illegal shorting, and other manipulation. (To wit, when the short interest figures were released for this month it was discovered that 91,000 open shorts of INTF existed as of Apr. 15, up from 6,000 a month ago.) These factors can cause swings (both up and down) to be magnified beyond what is appropriate. INTF went from 30 to 82 on no significant news and then from 82 to 8 on no significant news. Hell, since the (apparently) negative earnings release, INTF has doubled. Our investigation into these matters is ongoing. I will keep you posted as information becomes available. In the meantime, if you want to speak with me directly I continue to make myself available.
John Joseph
joseph@congressionalsecurities.com
(203) 618-9073 |
