How come I keep reading that eght is not being positive about their products and not showing enthusiasm for their prospects because they fear investor lawsuits? That's a bunch of crap. I see CEO's cooing their prospects all the time. A little puffery is not illegal. I think the lawsuits thing is way overdone. If these guys are afraid to say good things about the company let's get a few realtors or used car salesmen in management they'll say anything about anything to get the ball rolling.
I don't think law suits arise because management "coo their prospects". I think they arise when the actual results are less than what was cooed several months ago.
Point in case: Theragenics Inc.
This company announced it's quarter results on Jan 11th. They made 11 cents a share which was 2 cents short of estimates. The market for their radioactive seeds (to fight cancer) was somewhat flatter than management had been projecting.
Whoaaaaaa Nellie ! Look at all the lawsuits ! (Some are repeats) Gotta be at least 10 separate suits filed since Jan 15th.
And they all say in the complaint :
"The complaint charges Theragenics and certain officers with violations of Sections 10(b) and 20(a) of The Securities Exchange Act of 1934 as well as Rule 1Ob-5 promulgated thereunder. The complaint alleges that defendants issued a series of false and misleading statements concerning the Company's business, its products and its prospects for future profitability." I think we should just call the New York Times Financial Desk and announce "Blue Horseshoe loves 8X8....." and hang up.
The lawsuits are disgusting. People lose money and want someone else to be responsible. 'Nuff about that.
Did anyone hear about the decision to take effect sometime in March regarding the release of news to non-internet services BEFORE being released to internet services?
The reason? Investors with internet access to information which is likely to effect stock prices have an advantage over those without internet access.
Hey it's an advantage but is that unfair? Where do we draw the line? Let's outlaw online quote services. If you want a quote you'll have to call your broker or look in the evening newspaper.
Roll over Ayn Rand. Give me a break. If you want food go where the food is. If you want information go where the information is.
How level do we want this playing field? How level can we make it? When we have to handicap some to make the game fair for others and we spend time thinking up stuff like this, something is out of whack.
Somebody help me. Give me a better reason why information should be delayed.
If every company got sued for missing earnings estimates no one would have time to conduct business. Scan any list of earnings surprises and you'll find companies that missed and some by more than .20 share (WPIC). I don't think people stand in line to sue ( although I'd admit some will sue for anything and you can't protect yourself against frivolous law suits). That point aside a company has to demonstrate great belief in its product and what it is capabilities are "it's called selling."