To: s martin who wrote (772 ) 2/13/1998 6:48:00 PM From: LPasko Read Replies (1) | Respond to of 6528
As always, I feel we are wasting valuable energy here discussing each other rather than discussing the stock. From my perspective, all of the verifiable facts are positive; the negatives are based on speculation that so far has no factual support at all despite strenuous efforts to find that support. We know this at least: the Richard Holcombe associated with this potential merger is the same Richard Holcombe who achieved top executive positions at Woolrich, Amerex, and Rockport, all of which are "household names" in the apparel and sportswear industries. From all I can tell, Mr. Holcombe's involvement here is a positive; experienced mmanagement always is. Second, we can say this much about Mr. Theodore Raabe. He is a securities lawyer, and he had the perserverance a few short years ago to band together with a group of concerned investors at a company called Quality Products (NASDAQ: QPDC) and oust allegedly corrupt management. Raabe and his interim team held things together at QPDC until Mr. raabe could attract takeover expert Bruce Weaver to assume the President's job. Weaver is turning QPDC around (which seemed close to an imposssible task) so Mr. Raabe's choice seems quite wise. The timing of announcements is controlled by SEC rules, although some judgment calls are always involved. The essential rule is that preliminary merger negotiations must be disclosed as soon as they have reached a stage where investors would find them to be "material." ( A fact is material if investors would find it "important" to an investment decision. Given the hundreds of posts here, I don't think we need to waste much breath on the question of whether the potential merger is important to TVSI investors. Why the announcement Friday night? I don't know. I wasn't there. I can hazard an educated guess, however. If you look back you can see that rumors of a merger were swirling last Friday afternoon, some of the rumors were quite off the mark, and the volume was spiking. Those here who have been investors for a few years, or even a few months, know how ferequent it is for merger negotiations to leak out. Such leaks seem to be more the rule than the exception (there's even a website called stockrumors.com dedicated to this phenomenon; go look at it for some examples of rumors turning into fact). Once rumors are out (as they were Friday), many responsible companies rush out press releases so as to keep the rumors from getting out of control. as we can see from this thread, this doesn't always work. As to the big spike on Monday, it can be explained by hysteria, supply and demand, and the surging popularity of daytrading. I don't know the answers to the rest of the questions posed, or whether the people quoted actualy said the things attributed to them. I will say again that if I sold today I would lose money. I do not blame anyone for this--I knew that I was buying into a situation involving a deal in the making. Time will tell whether our investments were wise or unwise--let's not look for scapegoats just because this stock did not enrich us this week.