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Any comments on the recent Cramer/WAVO situation?
Will Cramer be held accountable for WAVO tanking just moments after he literally trashed the co's reputation?
For those not following this, Cramer was on CNBC last wednesday and made negative comments prior to and during the interview with WavePhore's CEO David Deed.
Basically Cramer is being cited as:
>>>1)characterizing certain internet companies as ''Fraud-U-Net'' companies; 2)regarding his attempts to ''short'' WavePhore stock prior to the interview; 3)that ''Greenspan doesn't like WavePhore going up.''<<<
Now I dont know the legalities of making such comments. Evidently the matter has been turned over to the SEC/NASDAQ for review. We shall find out shortly if Mr. Cramer crossed the line.
Below is exactly what happened:
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Friday December 4, 10:02 am Eastern Time
Company Press Release
WavePhore Responds to Guest Comments Made in Conjuction With CNBC Interview
PHOENIX--(BUSINESS WIRE)--Dec. 4, 1998--WavePhore Inc. (NASDAQ:WAVO - news), the leading new media content integrator and architect of internet and wireless digital delivery systems and services, is responding today regarding certain events and the trading activity in its stock on Dec. 2 & 3, 1998.
The company is issuing this announcement to address certain statements made by a guest host prior to and during the Wednesday morning interview with WavePhore's chief executive officer.
''The company has a clear responsibility to respond to the statements directed at WavePhore in connection with an interview with our Chairman, President and CEO, David Deeds,'' stated Chief Operating Officer, R. Glenn Williamson. ''We believe that the statements by the guest host, James Cramer, by his own admission, did not reflect full knowledge and understanding of our business.''
Therefore, the company is issuing this press release to assist its shareholders in understanding these events.
A significant increase in the price of WavePhore's stock commenced on Wednesday, Nov. 25 and carried forward following two company announcements released on Monday, Nov. 30 regarding new enhancements and partnerships with respect to its WaveTop product line. These announcements included an on-line mall and E-commerce channel and a partnership with Wave Systems which provides pay-per-use programming.
The price of WavePhore stock fell significantly following the Wednesday morning broadcast of the interview which included statements by the guest host: 1)characterizing certain internet companies as ''Fraud-U-Net'' companies; 2)regarding his attempts to ''short'' WavePhore stock prior to the interview; 3)that ''Greenspan doesn't like WavePhore going up.''
The company has contacted the Securities and Exchange Commission and the NASDAQ Stock market to investigate these events to determine whether applicable laws and regulations have been violated and WavePhore has been advised that such matters are currently being reviewed by NASDAQ.
The company has received overwhelming expressions of support from persons who viewed these remarks and considered them to be highly improper and unprofessional.
The company continues to make encouraging developments in its business operations. This was emphasized by its recent major announcements of the launch of an online mall and new electronic commerce channel.
''We are extremely pleased that since introducing the initial 10 merchants within the WaveTop Store, we have received inquiries from more than 20+ additional premiere on-line/e-commerce vendors to participate in our unique broadcast mall,'' stated Thom Kozik, executive vice president and general manager, WaveTop.
In addition, the company has launched an extensive marketing campaign, which includes a major retail effort in conjunction with CompUSA, Office Max and Computer city nationwide.
WavePhore's WaveTop software is now available through more than 95 percent of all multimedia convergence and TV tuner cards shipped. The free WaveTop broadcast service is currently available to more than 95 million U.S. households. All that is required to receive WaveTop is a free copy of WaveTop software and a WaveTop-compatible multimedia convergence or TV tuner card in a PC.
WaveTop is also available through its inclusion in Microsoft Windows 98 and Internet Explorer 4.0. This has resulted in a significant increase in WaveTop's consumer audience.
The company's continuing growth and market share is reflected in the quality of its alliances with such companies as Microsoft, Intel and Compaq.
The company has additional business relationships with Dow Jones, Associated Press, Ziff-Davis, Thompson First Call Financial, Reuters, Gateway, STB, ADS, Hauppauge, AIMS, PBS National Datacast and ATI; with content providers including companies such as Bloomberg, Yahoo, Time Inc. New Media, USA Today, CBS Sportsline, The Weather Channel, Fortune, WSJ.com, ZD Net, and with over 200 Fortune 1000 companies worldwide who subscribe to WavePhore's services.
At Oct. 30, 1998, WavePhore had in excess of $10 million in available cash. The company expects to continue to grow its revenue and improve its cash flow from operations into 1999. The company is confident in its ability to fund its continuing operations and enhance its future growth.
David Deeds has more than a quarter century of executive level experience, in managing financial and operational aspects of companies.
''Although I respect a person's right to express his opinion, I have never been subjected to the type of attack made with respect to WavePhore and me before and during my interview,'' stated David E. Deeds, chairman, president and chief executive officer. ''I have a long-standing relationship with the financial community and insist on maintaining the highest ethical standards for myself and WavePhore.''
Deeds was co-founder, president & CEO of Conseco Inc. [NYSE:CNC - news], a financial services holding company listed on the New York Stock Exchange until his retirement from the company in 1988. Deeds was instrumental in bringing Conseco to the forefront of its industry and making it into a multi-billion dollar corporation.
He founded and personally funded WavePhore with $16 million of his personal resources. He has a proven track record for assembling and managing top quality individuals who provide the expertise to develop successful companies from emerging enterprises.
Any inquires regarding this release may be directed to R. Glenn Williamson, COO, and to Douglas J. Reich, general counsel.
About WavePhore
WavePhore Inc. (NASDAQ: WAVO - news) is the leading new media content integrator and architect of digital delivery systems. It partners with the foremost providers of news, business data, Web-based content and multimedia programming to deliver selective intelligence and quality content to an information-dependent society.
WavePhore (www.wavephore.com) enables people and enterprises to more efficiently receive, manage and productively use all types of urgent, insightful, or relevant information.
The company's technologies and services aggregate, filter, customize and distribute digital content (text, graphics, music, and video) using a wide range of reliable, low-cost broadcast (FM sideband, TV-VBI), satellite and Web-based delivery systems.
It has technology sourcing and strategic alliances with Microsoft, Intel, Compaq, Sony, Gateway, STB, ADS and PBS National Datacast, in addition to information service agreements with some two hundred Fortune 1,000 companies worldwide.
Additional information on WavePhore is available via the Internet at wavephore.com. Information on its business units can be found at: wavetop.net, wavephore.net and newscast.com.
Certain of the above statements regarding WavePhore constitute forward-looking statements, which may involve risks and uncertainties.
Actual results could differ materially from such forward-looking statements as a result of a variety of factors, including, but not limited to, technology changes, competitive developments, industry and market acceptance of new products and services, risk factors listed from time to time in WavePhore's SEC filings.
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Contact:
WavePhore Inc., Phoenix
R. Glenn Williamson, 602/952-5500
gwilliam@wavephore.com
Douglas J. Reich, 602/952-5500
dreich@wavephore.com |
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