To: Jay D. who wrote (1004 ) 2/23/1999 10:07:00 AM From: MasterConfucius Read Replies (1) | Respond to of 1140
Still you would think that a company like RONCO that depends on consumer confidence in its brand name would be careful about its image. A lot of people are claiming this is a shady venture and RONCO might be involved in it, inadvertantly or not. According to the post who talked to the CEO, ONTV is doing RONCO's internet marketing. That can clearly be inferred from the press release as well. Shouldn't RONCO straighten these matters out if they are false and misleading in anyway--especially the press release that was sent out? If RONCO is involved in a pump and dump, I wonder how many people will buy their products. I personally don't believe businesses have that much integrity. What forces compliance to ethical codes is $$$$. RONCO has a major stake in all this because any negative event associated with ONTV could negatively impact their sales. Of course they could be calculating that they would never get caught in this "scam." But why bother, when they have a multi-million dollar sales organization to run. If you read my previous post, I've speculated on the reasons for this move. RONCO clearly needs to have an internet presence and a technology partner to carry this out because of the prohibitive cost of advertising on hundreds of different cable channels. Anybody can do this, yes, but they have a working relationship with ONTV that goes back several years. Why would RONCO jeapardize a critical transition from infomercial to internet commerce (which I've argued is important for their continual success) by propagating a fraud? I will readily admit that I am assuming a lot here. But I am trying to take all these criticism seriously and trying to respond in the best manner that I can. I am not completely convinced of this deal either. Perhaps I'm rationalizing to myself to a certain extent. Yet to me, all the pieces seem to be falling in place. If you don't think so, I would agree that you have legitimate concerns here. But I really don't think people are getting "duped," especially at the current price levels. If the price ever moves up into the teens, then your concerns would be magnified, and I may be inclined to agree with you more. But at a 1.25 a share, with a low float? At that point the speculator in me would be tempted, all the while my rational side tells me to proceed with caution.