Tony, RE:<<What do you think of companies, like EMC, that proactively nip rumors in the bud, that they know full well are false? Is that over reacting, or should companies turn the other cheek, so to speak, and say nothing?>>
IMO the company should say nothing except in exceedingly rare circumstances. Once you start commenting on rumors, you are almost required to comment on them all. If you don't comment, you give the appearance that the rumor is true if you have established a practice of commenting.
Specifically regarding Intel, I think they handle this situation better than almost anybody. As long as the quarter is proceeding within guidance, they say nothing. The quarterly number may be under or over First Call consensus, which management justifiably ignores. As long as your time horizon is longer than a couple of weeks, then, the rumors can only help you. The price is temporarily low, giving you an opportunity to buy cheaper stock if you choose, and a couple of months from now, the rumors are meaningless.
If your time horizon is less than two weeks, well, rumors are part of the ball game. |
