Aus- Clinton was super-effective in '92 during his Presidential run......for whenever Bush's team would try a critical press attack (news release, etc), Clinton's "troops" would IMMEDIATELY respond with a release....getting their message/response out there as the LAST WORD...perception is reality....and Clinton's team looked sharper...
Although in the long-term, stocks trade on earnings...in the short and medium-term, lots of things can affect a stock's price.....having the word "FRAUD" and your company named by another company/analyst/etc....SCARES A LOT OF PEOPLE.......a company's PR/IR should try to control those things (when) it can....in this case, it has/had an opportunity of doing something (and it hasn't)..this "higher road" stuff....NO ONE sees that....all many short-term/medium-termers see "FRAUD" and they run for their lives...
Look at TYCO this year (since last October)...it tooks months to recover, and is still not itself....you can not let a "negative" image, no matter how salacious, to hover over your stock.....Tyco did the RIGHT thing, invited in auditors, etc, but it still wasn't enough......With so many other stock alternatives, many folks can say, "why hold this (SNDK/TYC) company, when we won't know results for months....Given the trial might go thru a lot of incarnations, SNDK needs to recognize that (in investors minds) a PR war is taking place....Since we are not in the court room; part of the legal discussions....we only know what we read in the press...
They should come out hard against this "FRAUD" announcement by LEXR.... |
