*** EMAIL TO CNBC ---------- LONG OVERDUE ***
Was I too diplomatic? LOL!
****
March 1 ,2001
Sue, et al,
I have not written you before, nor any other CNBC anchors, but I found myself frustrated enough today to write. Today, after the Nasdaq finally decided to pay some attention to the good economic numbers and people spirits started to lift, you guys ended up pounding on the ORCL thing, over and over in afterhours Friday. I believe I heard you mention it 4-5 times in the hour or so you were on this afternoon. I know you are the messenger, but on behalf of thousands of viewers or former viewers why are you guys continually doing reports like that? Here's what I mean:
The Markets are so hyper-sensitized because of the micro-analysis of every little detail on shows like CNBC. May we all remind you guys that Oracle is one company and they missed by 1 cent. More importantly, they actually said that only sales in Asia were down and that was the sole reason they didn't meet or beat the number. But you guys turned it into a major deal for the small investor to digest. You asked guests if this could sour the rally. You spoke of their "miss" as if the whole market sentiment should change now. You guys have a great deal of influence and you blew it.
After all, are you trying to say that every company has as much business in Asia as Oracle does?
Are you trying to say that the Markets and every tech company or software company is doing at least as poorly as Oracle?
Did ORCL really deserve all that discussion in the Afterhours?
Do you see my point? You guys, apparently in your quest to make the show interesting, regularly over-dramatize relatively unimportant details. MY take on the ORCL report was, "Good, they beat sequential revenues in the U.S. and Europe, so at least those economies are doing better, but you guys didn't think to mention that. I would have at least reminded viewers to keep this one companies report into perspective.
You may have single-handedly killed a potential rally on Monday by helping to change sentiment. Not just in Oracle's niche segment, but the whole tech sector. Worse yet, you "helped" to remind eveyone how we all have to be incredibly aware of the smallest detail and the smallest sentiment change. The market has become the crazy, scary criminal that you don't dare say the wrong thing to.
By over-analyzing or over-dramatizing details, you often fan the flames of nervousness. You also let the rumor mongers know that they can start a rumor and have it probably tank a stock or maybe the entire Market. Why? Because you will report it and everyone will assume the worst first and analyze later. You have a duty perhaps to report it, but why can't you spend more time telling us how many rumors have been false lately? Why can't you help us all keep it in perspective?
Haven't you noticed that since Tyco, that a great many companies have had to fight and deny spurious rumors? Maybe you should have a psychologist author your material, huh?
What happened to "Buy and Hold"? I'll tell you. With all the rumors, true or not, you can't do that anymore if you want to maximize your return. The rections are too violent. The next GNSS or TYC or even MMM (during the asbestos scare) is waiting to happen. By the way, only recently did I hear on your show that MMM's exposure to asbestos was silly because they make masks to help protect people from it. Why didn't you bring on guests to say that months ago when the stock was tanking for days in a row? (if you did, I apologize)
I wish there was some way you guys could figure out how to strike a better balance in your reporting of the news. We all know how important sentiment is, but you guys have helped turn the small investor into a very nervous wreck and forced him or her into very short term thinking. That includes little old ladies from Pasadena and from hundreds of thousands of other towns around the world.
The feeling is that people in power can make the Markets tank anytime they want because of this extreme nervousness mentality. Many cannot sleep at night, yet they can't afford to be out of the Market with the low CD rates. Mutual Funds are not even safe. I heard the Firsthand Fund was down huge yesterday because of their 12% exposure to GNSS. This extreme sensitivity is out of control.
Please consider doing what you can to smooth out the manic nature of the Market. To many I know, it appears all you guys care about is ratings. Meanwhile a lot of people are very depressed and losing a lot of money that you guys could help prevent by changing your over-dramatic tone and slants. I hope you will think about it. |
