Anyone know if this is the same reporter who helped SRCM spread the take-over hype? Excerpts from today's article below --
Lawsuit May Still Be Weighing on Source Media Stock
By PAULA L. STEPANKOWSKY
Dow Jones Newswires
LONGVIEW, Wash. -- Shares in Source Media Inc. SRCM) were trading down more than 18% recently,likely due to a number of factors, including a class action investor lawsuit filed Friday, analysts said.
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Analysts said, however, that concern over the lawsuit, which was filed Friday, could be continuing to weigh on the stock.
"I'm sure it's down because of the lawsuit," said Anthony Stoss, an analyst with Southeast Research Partners, who added the suit could be used by short sellers to make a profit. "Anyone with $100 bucks can file a lawsuit."
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Henderson, of Janco Partners, said the recent volatility in Source Media's stock indicates that the company's shareholder base isn't stable.
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Henderson said with Source Media's stock at this level, he would expect to see some value investors enter the market.
Stoss, of Southeast Research Partners, said a lot of the speculation about Source Media stock is coming from Internet chat rooms, which are largely unregulated by the Securities and Exchange Commission.
"When you have guys in chat rooms out soliciting class-action lawsuits, there have to be issues raised with that," said Stoss, adding that he believes the SEC should watch chat rooms more closely.
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"On a fundamental basis, regardless of efforts by the shorts, we believe the company is tracking the way we would like it to track, and we have high expectations for the company's future," Stoss said. |
