From Yahoo...
Open Letter to All IDC Shareholders,
Officers & Directors
by: scott8080 (41/M/Washington, D.C.)
1904 of 1909
I think that we should all congratulate IDC's Management team who are
responsible for yesterday's Release on the Field Trials. That 1
announcement created over $20M in value. While the increase in share
value may be lost over time if the company can not follow up with
subsequent releases, it also builds a higher base from which the stock can
rise to new highs.
I believe that the stocks reaction to yesterday's release is based on 2 very
different factors. One factor is the Release reported on the company's
positive progress regarding to its "B-CDMA" product.
The 2nd factor is more subtle. The shareholder base is desperately
searching for any information on the company's progress and prospects. I
believe this is why so many rumors have been circulating recently. When
there is an absence of genuine news, some create "faux news" to fill the
void. Investors, hungry for information, flock to the broker rumor circuit
when they have nothing else to use to evaluate the company's prospects.
The Company's decision to release an announcement which details their
progress in the field trials demonstrates that they are hearing the cries from
the investment community to provide more information.
Never-the-less, I do not believe that 1 announcement solves the problem.
Based on the postings on the various Boards, the e-mails and phone calls
that I have received, I believe that the investors are in a greater state of
revolt than I have ever experienced. This is a strong statement, because I
was involved in previous shareholder drives which resulted in
management changes. I consider the disconnect that currently exists
between management and the shareholders to be extremely serious.
One could compare the shareholder attitude towards management to the
attitude of the Russian Peasants before the fall of the Czar. In that case, the
population was so angry by what they perceived as an arrogant disregard
for their well being they took to the streets to overthrow their government
and .... ended up replacing it with something that was much worse.
I do not want to "throw the bastards" out only to discover (six months
down the road) that I am in worse shape than I was before! I know most of
the company's senior managers on a first name basis. While I know some
of them better than others, I can honestly say that I sincerely believe that
each and every one of them believe they are working their buts off to
advance the cause of the company. Furthermore, I believe that they really
are working hard to deliver new sources of revenue for the company.
However, despite their best efforts, they have failed to live up the
expectations which they have set for themselves, not to mention the
expectations of the investment community. Are our collective expectations
too high? I don't think so. Rather, I believe that while IDC has the ability to
open many doors and institute a dialog with some of the most powerful
players in the industry, they still lack the clout to bring many of these
opportunities to closure.
It is my recommendation that IDC's Board begin a SERIOUS search for a
well seasoned, highly regarded, executive from the telecommunications
industry to augment IDC's management team. Currently, the company has a
respectable cash balance along with (according to management) several
favorable opportunities which hopefully will materialize in the near future.
This, combined with the numerous mergers in the industry should enable
the company to recruit a well regarded CEO. Bringing in a new CEO to
support IDC current management team would be a win-win situation.
If the Board fails to pursue such an option, I fear that rift between the
investors and management will become so great that everyone will suffer.
|
