JKJ .. It is also about perceptions .. That is a very difficult thing to quantify .. but they can play a big role in stock price movement. I can't speak for anyone else but as I listened to the CC I just got more and more confident that the IDCC management team has turned the corner and are on a winning streak where they will actually begin consistently delivering in amount and time close to what they promise from this point forward. Perhaps others listening to the CC had a similar reaction. Might it have been an overreaction to the fine job Merritt did as Loop has suggested as a possibility? Sure and only time will tell. But if a significant number of investors listening to the CC had a similar reaction to mine that would increase the demand of buyers, decrease the supply of sellers and give rise to a significant stock price increase. Nothing earth shattering about that.
It is one thing to read the transcript of the CC IMO and quite another to listen to it. Hearing how something is delivered often has as much if not more effect on investor confidence or lack thereof as the words being spoken. Actually watching the body language when it being said adds yet another level of perception. Observing management in an informal, one-on-one setting presents the ultimate perception opportunity. Everyone who has been to an ASM can attest to that I expect. I have said it several times before. One of the primary reasons that institutions rely on sell-side analysts is that they have frequent opportunities to actually meet members of management and engage and observe them in one-on-one conversations. I would expect that both of ours, for instance, had already met and spoken with Merritt on one or more occassions before the CC. It is not that sell-side analysts get information we don't .. that is a clear cut FD violation .. it is that they get a more informed chance to form an opinion as to where the weak and strong links are in the management group, how they interact with each other and how relatively strong or weak they are when viewed as a team. Bottom line .. can they get the job done or can't they? That is invariably a judgment call and one that is typically improved in accuracy the closer one gets to being able to observe the individuals in action. Sell side analysts whose perceptions of management turn out to be true more often than not can be invaluable to institutional investors.
Regards,
Danny
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