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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: Rose Rose who wrote (1733)	5/9/1998 10:21:00 AM
From: Peter Mui	Respond to of 6931

> I'm an admitted newbie who hasn't had nearly enough > coffee yet, so this may be an idiotic question. Why > would companies not wish their names to be included > in a release? Many of the larger companies don't need the exposure and frankly, it makes them look inadequate if they are relying on a small player like TSIS to help them with their operations. A behemoth like AT&T relies on reputation and perception; if it is perceived that they "need" a company like TSIS, then perhaps that may be construed as a chink in their armor. It is not uncommon to find companies that are unwilling to reveal who their suppliers/partners are. Secrecy makes it easier to keep the competition from using them also... Regards, Peter

To: Rose Rose who wrote (1733)	5/9/1998 10:28:00 AM
From: John S. Baker	Respond to of 6931

> Why would companies not wish their names to be included in a release? If a contract has been signed, why would the "big" company insist that TSIS keep it quiet? < Many big companies feel that having contractors put out what they consider to be nickle-dime press releases tends to flood the newswires with mentions of their stock. Since buy-side analysts (as well as many other investors) set their wire machines ... or computers ... to alert them automatically whenever there is a news mention of a stock within the portfolio or under consideration, these mentions cause the alerts to go off even when the information may not really be "material" to the stock of the big company. In others words, it's like inundating decision-makers with multiple false alarms. Think how many suppliers GM or Chrysler (or Seagate or Intel or Applied Materials) have -- counting everything from brooms to copier paper to rivets to shareholder relations companies. Other big companies dislike giving away any competitive information, like who their suppliers are. Suppose that you were snooping on a hard drive company, and you knew that they bought all of one kind of item from one supplier. Suddenly you see a release from a different company. Wouldn't that trigger you to start snooping to see what that new company offered that the previous one didn't? Another reason is our increasingly-litigious society. In most major corporations, press releases ... as official utterances of the company ... must be reviewed by the lawyers prior to release. And like it or not, the lawyers must be paid. So some companies limit the number of press releases to reduce the legal costs. And lastly, in some cases I suspect that there are not-invented-here issues on the part of corporate PR Departments. "It isn't our release; we don't want it." Hope this info from a veteran of those turf wars helps a bit.