Tuesday, March 29, 2011 2:17:01 PM
The problem with the previous run-up was PR. It was based on players coming in and buying stock prior to an announced announcement. As soon as the announcement was being made, the players began selling, and the stock dropped.
That scenario was one that severely damaged investor confidence. Lots of people bought in on the way up and were shocked when their investments went South after the exciting announcement of a bona fide breakthrough. That's what PR did for us last time, and I think Kim is probably concerned about that happening again.
Those that are anxious for PR seem to be either players who want to generate and benefit from a run-up, possibly through shorting or normal buying and selling, and those who are desperate to get back to the levels at which they bought in, even if transiently, so they can at least regain their investment.
Given the player scenario, I can see why Kim would prefer to wait now until there is something firm to announce. The stock will rise based on fundamentals of the company, not on players feeding off of hopes of other investors. the rise may not be as huge, but the downslide won't be as big either. Overall that should contribute to better investor confidence.
That's my feeling on this whole PR blackout, and if that's Kim's reasoning, I endorse it. I'd rather have confident long term investors than day traders playing the stock, pumping and dumping the stock, which is all the pump and dump I can see there is evidence for thusfar in this stock. Those players are justifiably frustrated that they can't make a play here because of the blackout. I confess, I like that.
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