SGE / lambertslunatics - Re: Cancellation - Milestone
in response to
by
posted on
Nov 06, 2007 08:06PM
I don't believe I ever indicated management was inept, nor do I recall anyone responding to my original thread using such strong language.
What I DID state was for PTSC to out of the blue schedule a webcast, to be hosted by its CEO, in which he indicates he will recap the SHM, offer his thoughts on the stock price and direction of the company, and take Q&A from interested parties, and then subsequently cancel the same day without explanation was unprofessional and indicates poor coordination and management of information coming from the company.
Keep in mind, this wasn't a simple appointment for an interview with a reporter that Turley cancelled due to another obligation, this was an appointment with US, all of the owners of the company, as well as all of the analysts interested in PTSC, all of the potential institutional investors that might want to listen in, any potential NEW retail investors. Furthermore and it was an appointment Turley unilaterally instigated. For him to have initiated the idea of the webcast, the timing of it, the content of it, and the format of it in a presentation followed by an open Q&A, go through the expense of publicizing it in a PR and setting up the expectation of it, and then abruptly cancel it without explanation is IN FACT a sign of poor coordination and management of information coming from the company, and it IS unprofessional, in my opinion. I would bet if you asked Analysts, and Institutional investors, they would agree. This is especially true considering this was done in a new atmosphere of expectation from the market created by the stay in proceedings and subsequent news interpretations of the stay, and as indicated by share price increase, and the volume increase. I would also bet that serious minded NEW investors would take pause as to why a company's management would do such a thing, considering this was a voluntary, unrequired event. In my opinion, these issues are more in the realm of unarguable fact than opinion.
All of that being said, I'm not calling for Turley's dismissal or even questioning his qualifiacations. I'm simply stating that I think he made a serious mistake in setting up expectations in an environment of already heightened expectation, and then uncerimoniously and WITHOUT explanation, yanking the event. Many people, investors, and analysts, MAY have altered their schedules for tomorrow to be able to listen and participate. Creating a reason for them to do so, and then cancelling without a reason is unprofessional. If someone did that to you, in your daily business, you'd probably think so as well. Yanking without explanation leaves an unexplained void that just from reading this board proves will be filled by all kinds of speculation raging all the from both ends of the extreme. This creates an uncertainty that markets typically do not like. There are any number of phrases that he could have added to the PR that cancelled the webcast that could have added some context and qualified the reason for the cancellation that would have been benign enough not to reveal anything but would have ended all of the uncertainty. Something as simple as saying "the webcast will be rescheduled and further infomration will be provided in a subsequent announcement as to the rescheduled date."
I agree that this isn't the end of the world, but I certainly don't think it's trivial. As the CEO of a PUBLIC COMPANY, his public statements, and CERTAINLY, events that HE initiates, and HE publicizes, create expectations. Doubly so in the current environment of events. Doing an about face, and within hours of the original PR without explanation is a mistake, and it is not trivial. I think he needs to hear it, take responsibility for it, and correct it so that it doesn't happen again. If that means dealing with whoever is responsible in-house for orchestrating the events (if it's not him) or dealing with Hawk & Associates, it should be done. Shrugging it off as "no big deal" will leave investors, existing and more importantly new, with the perception that management is less it should be, and in my opinion, allow an atmosphere within the company that they can be careless. If they're careless in things as easy as this, then what else are they being careless about?