To: Ted David who wrote (5801 ) 6/4/2000 10:22:00 AM From: WTMHouston Read Replies (2) | Respond to of 17683
TD: Three points: (1) CNBC seems to be doing a MUCH better job at not cutting off guests during interviews: a very positive change. (2) Most of us wish that we had one-tenth the access to company spokesmen as some folks at CNBC. As a result, whether it is real or not, it does appear a bit arrogant (and unjustified) to suggest that a company is not well run and might be a poor investment simply because they did not return a media phone call. Contrary to the implication in one of your posts, news-media relations are not on the same level of importance to a company as customer relations or service: in fact, they are not and should not be anywhere close. (3) Without some specific factual basis for drawing the conclusion, it seems a bit heavy handed to suggest that an investment should be rethought simply because a company did not return a CNBC anchor's phone call. A suggestion that an investment should be rethought because of the lack of a return phone call to a CNBC anchor, turns the anchor's attempted communication with the company into the news. The news, IMO, is that they did not return a call, period, the end. The opinion that investors "may want to rethink an investment" because the company did not return a call is both unwarranted, factually (without some other basis for reaching the conclusion), and, IMO, turns the news reporter into the news maker. While it is certainly better for news-media relations to promptly return phone calls, the company may have had legitimate business reasons for desiring not to publicly comment in the way that CNBC wished they would; just maybe, the company shareholders were better off without a public comment than with one. If one does not feed a hungry animal (the press), it frequently tends to start looking elsewhere for its meal. Do not misunderstand this: I am not suggesting that this is what happened. Rather, I am only suggesting that without more facts either conclusion is equally likely and neither is any more or less factually based. The logic of beginning with saying that "a company that doesn't return calls might not be well run and therefore not a good investment" does end up with "and because of that its stock price might go down." That is, of course, what usually happens to stocks that are not good investments, isn't it? It is at least as reasonable an inference (conclusion) as that "a company who did not return (any CNBC anchor's call) may not be well run and therefore not a good investment." The comment was "talking down" of the stock. Thus, I disagree with JXM that the comment was an implied threat to talk the stock down in the future. However, this disagreement may be more form than substance since I view the comment as the act of talking down the stock. IMO, Joe and David do a darn good job and are generally reasonable and informative in their responses and opinions. Plus, unlike some folks, I both like and appreciate their commentary and opinions. That, however, does not mean that they are perfect and never blow one: we all do. Isn't it equally reasonable for someone to get a bit perturbed when they hear what sounds like a company getting slammed (investors may want to rethink whether this is a good investment because they did not call me back) when there appears to be little, if any, specific factual basis for the suggestion? Have a good weekend. Troy