Replies to post #3043 on Rim Semiconductor Company (fka RSMI)

[year2000]

Twister, I don't think you should be focusing so much on the share price as you should the news at this time, obviously with a man like Tom Cooper agreeing to take over our little otcbb company that should say it all. The stock price will take care of itself.Buy more now while you still can. 3-6 months from now we all will be saying ," boy i can remember when I could buy this stock for 50 cents to 1.50" imo.Why are you so negative all of the time? You should really try to have a more positive outlook it will do you wonders, good luck.

[spokeshave]

Twister:

I would hope it does not continue to become too healthy using your standards. Corrections yes, continued deep correction on good news, no, not part of a healthy stock, following such an important release, IMHO. And not to be expected at the open on the day we learn of a successful prototype or telco contract either. Down from 1.79 to 1.20. No, not healthy.

I guess we will just disagree then. I would like to point out, however, that the behavior I cited as being healthy is not according to *my* standards. It is pretty much common investor knowledge that a very rapid, very large gain is usually followed by a retracement of up to 50% of the gain. I did not make that up, and I do not own the rights to it. It is, nonetheless, considered healthy behavior. NVEI has retraced only about half of the typically expected 50%, so we are still ahead of the game.

Good news when presented correctly, moves the PPS up and supports the current price. That is why it is called good. The replacement of any CEO or CFO signals immediate caution to prudent investors. Time is needed by them to evaluate and accept the potential change being contemplated, before it is a done deal. That promotes order. That is why the 'when' and 'how' it is presented is so very important. The market hates surprises. Perception is everything.

Thank you for defining "good". However, your definition is flawed. It is also a well-known investment phenomenon that the market often buys on rumor and sells on news. Shoot, I recall a time a couple of years ago when Oracle announced earnings that beat the street by more than 50% one quarter. The next morning, the stock dropped 12%. By your definition of "good", a 50% upside surprise in earnings is not "good". Good news does not always drive the market.

As for the market hating surprises, well, there is not way to reveal to the market that the intent is to change the CEO of a company without surprising the market. What other way would not constitute a surprise? Suppose that NVEI had announced in January that it intended to replace the CEO with someone who is as yet unnamed. Would that not have surprised the market? Your logic is completely flawed. At some point, you must release a PR that has the words "CEO" and "replaced" in it. That PR, no matter what the other words say, and no matter what the timing, will surprise the market.

The unnecessary release of substantial news during a bubble is not prudent. The use of good news and good presentation toward the end or after a natural correction is more appropriate.

I disagree. What's more, the SEC disagrees as well. If the news has the potential to materially affect the share price or the potential to materially affect an investors decision to buy or sell, the company is obligated by law to make the news public within a reasonable time of the event taking place. Anything else could easily be construed as illegal manipulation.