GV,
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.
Thanks for the very well thought out opinion. I agree that companies should make it a rare occurrence to speak out on rumors. Just that too many analysts or whoever seem to feel they can climb all over Intel whenever they want to.
I thought of an analogy to the Intel case, where so many analysts feel free to have an opinion about them, because their products are relatively well understood. I work in an engineering environment, with people that are expert in several fields. Three of the most prevalent are logic design, software, and mechanical. On mechanical, everyone thinks they can critique it, or design it, because they can see it, feel it, etc. Logic and software, on the other hand, are theoretical, obscure disciplines that are not manifested in anything visible. Basically, only those that work in these fields understand them, or would try to comment on them. Quite the opposite, I have seen mechanical design reviews given by very senior people in which purchasing, or finance, or other non-engineering people try to tell the engineer how to better redesign his widget, or whatever. At logic and software reviews, only people trained in these disciplines ever offer an opinion. Obviously, in my model, Intel is like the mechanical engineer. Everybody knows what's up with Intel, right? Wrong!
So, Intel investors are stuck with anyone and everyone critiqueing their stock's company, because the products are so well known, and sales and profits are so easy to follow (they think). Maybe I should buy more Cisco, Microsoft, and Mystique XYZ Co.? Thanks for reading the semi-rant.
Tony |
