Re: Timing of Release
My understanding is that the wire was released at the time stated, but that ORCL's 10-Q was filed at about 3:30 pme EDT. So the "news" was available to the market if "it" was looking.
Re: ORCL Announcement
ORCL is not speaking in this announcement. No one is quoted. The source of the substance of the is the Company's 10-Q; nothing more. I believe the wire stated "Oracle officials could not be immediately reached to comment."
The Issue
So the issue is why did Reuters run this wire when in-fact there is nothing new about the pricing risks the Company faces going forward. Did Company management wish to emphasize what had already been stated in past 10-Qs in an effort to highlight a greater risk going forward? If so, than the Company should issue a press release speaking directly to that matter. If not, than the journalist has some explaining to do. Why run a wire that offers no new information?
Regardless, unless some clarification is made one way or the other, the market will respond negatively to the wire. First, the market always reacts with a "knee-jerk" reaction (i.e sell, ask questions later). Second, if there is no true change in the Company's pricing outlook, then the wire, if anything, is a haunting reminder of the risks the Company faces going forward.
Nothwithstanding the substance of the matter here, the intent is obvious -- to drive down the price of the stock 'Come Monday'(with attribute to Jimmy Buffet). |
