I have just sent this email to C. Kameiniecki, head of investor relations at �firstname.lastname@example.org� feel free to do the same:
Dear Chesha Kamieniecki,
As a committed shareholder, I am extremely disappointed with the fashion UTStarcom has handled the PR side of the recent developments, many shareholders were confused, instead of being informed that UTStarcom has actually increased its 04 guidance in terms of revenues and net income, many were under the impression that company actually is suffering operationally (the various news wires headlines certainly gave such an impression)
Another fact that is hard to comprehend is why the company has chosen proceed with those new developments in such a disorganized fashion, the company issued a PR about the sale of shares of Bank of America, followed by a 2 lines PR confirming Q4 numbers, and highlighting that 04 updated guidance will be given on the 22nd, yet the next day UTSI issue updated 04 guidance. The disconnect between the three releases and the wording of the 04 guidance was a major cause of confusion, UTSI should have highlighted the following in its PR:
�In light of the raised 04 guidance, the company expects the share offering dilution effect not to exceed 0.10c per share, brining the expected EPS guidance to 1.87c-1.92c based on XXX (new diluted share count) million shares outstanding, instead of 1.92c-1.95c based on 133 million shares outstanding.�
I am certainly not in a position to question the strategic sense of raising of cash, neither am I in a position to dictate what would have been a better timing, I am and I believe I represent a view of a number of shareholders is demanding a better handing of the company PRs vis a vis the street, we do know that the company is in an excellent shape, however it is a pity that due to communication errors investors are unable to see the true picture.
I pondered after seeing the news late last night. Picked up some add'l shares this morning at 37.50. Would seem BOA bought in for to make something on this deal. Appears they did not have to sell under any duress (high debt). Agree that views for higher revenue in 2004 is a good thing, should override the short term diluation from this deal. But you would think they would try to present a more positive picture. I'll keep reading the headlines.