Jacobs is quite the promoter. His "Ask the Prez" section is filled with all sorts of interesting comments. Pretty scary stuff for a man with no D&O insurance. Check this out:
Q: Why is the stock coming down so quickly lately ?
Regards,
Abbe N. Edelman (7/2/2003 10:13:04 AM)
A: Hello Abbe,
It´s pretty normal for people to "buy on rumor and sell on news." It´s been like that for years. It goes like this: People who are getting ready to sell their shares (for whatever reason) hear a positive rumor about the company - in our case, let´s say the JP Morgan analyst who leaked news that SunnComm will sign a major deal with BMG). That rumor leaked out about 6 weeks ago. The folks who thought of selling during that 6-week period decided to hold and wait for the news because, if they wait, they may get a better price per share than they would if they had sold immediately.
The news comes out (eventually). If the price of the stock goes up, the delayed sellers sell at that time. If the price goes down, they sell anyway. The longer the duration between rumor and news, the more "delayed share selling" accumulates.
That´s what I think happened recently to SunnComm´s shares. For now, it looks like we have a new base at about 25 cents, and, as far as the people at SunnComm are concerned, the important thing is to concentrate on the fundamentals...technology, deals, and revenue.
Thanks for writing, Abbe.
Peter
sunncomm.com |
