All (and especially Neal):
The thread's dissection of the ABC News article is a example of the new reality companies must face with the emergence of the internet as a forum for investors. Companies can no longer enjoy the shield of investor ignorance when releasing information which is factually inaccurate. In years past, investors rarely, if ever spoke to one another (I know I never spoke to other investors before I got on the internet) and instead were relegated to stumbling across an article in the newspaper or catching occasional tv or radio mentions about the companies in which they were invested.
Now with search engines, and news subscriptions, we have access to nearly everything ever written about a company, and are able to read news within minutes of it appearing on the wires. Our newfound access to knowledge also gives us a degree of influence we've never enjoyed before, and as such we are still formulating an appropriate code of behavior when armed with this information.
I bet Custer, in his previous companies, probably never had to deal with the level of investor scrutiny of his every move as he is experiencing with CRTM. Most CEOs are finding themselves in the same predicament, and are having to evolve their concept of investor relations for their companies, and as importantly--having to give much more serious consideration to the accuracy and quality of the information they release in creating their company's image.
While I am sympathetic to the problems company leaders now face with this level of investor participation in the day to day performance of their companies, the fact is the " bell can't be unrung", and they must either respond to the situation by transforming their approach, or will suffer the consequences of their old style of conducting business. If, for example, the ABC News reporter stumbled upon this thread, or otherwise learned of our analysis of Patrick's statements, I think CRTM could find itself in a sticky legal situation (or at a minimum, publically embarassed) and not only he, but we as investors would suffer from the fallout.
Investors are now demanding to see what their money is doing. Companies must now act as though thousands of eyes are watching their each and every move. For the public companies that must face this kind of scrutiny, this degree of accountability is scary, difficult, and a pain in the ass. And it is now reality. |
