Get ready… here is the CEO of VU Television Network’s plans for promoting the company:
“We will make announcements about our progress as we can. We will not hire a company to promote our stock price. If people see our progress and see the potential, they will support the stock price and if they don’t they will not.” (see the post here)
We don’t know, maybe we are just frustrated that more is not being done to keep investors informed, however, this appears to us that the CEO is simply thumbing his nose at investors. The above quote is in essence saying… (in the form of a famous quote)… either you are with us, or your against us.
Additionally, it appears the CEO is becoming frustrated with investors asking questions. In one such exchange Mr. Samblis responds to a poster’s questions by posting this…
“I have been asked and answered this same question over and over again. I am taking what time I can to answer new questions that I an answer at this time.”
Investors are asking what many believe are valid questions, yet Mr. Samblis has demonstrated a history of cherry picking the questions he will respond to and ignoring the ones he finds uncomfortable. Now we understand some questions can not, and perhaps should not, be answered in a public forum, but to ignore the questions altogether gives the appearance of avoidance. When there is an appearance of avoidance, it creates a suspicion that something is being withheld. When something is withheld, there is a suspicion that the information is damaging. We feel, it would be best to acknowledge the question, and then explain why it can not be answered at that time, instead of insulting the questioner, as in the above quote.
In a later, obviously frustrated post by Mr. Samblis, he states…
“Well if you don’t believe what I am saying it makes no sense to come here and try to answer questions anymore.” This was his last post for the day, and who knows, possibly forever. (not a good move in our opinion)
In one of our recent posts here earlier, we stated… “Evidence of investor frustration and exodus are already evident, and some might say widespread. Your window of opportunity to announce some plans and recent achievements is closing fast.” Well, after today’s exchanges on Investors Hangout, it appears we may have over-estimated the time frame Mr. Samblis had to reassure investors that the company was headed in the right direction.
It appears many of the long-term investors have already disappeared from the forum and/or have become disenchanted with the company, and are joining others in demanding explanations of past and current events. And in one example here, one of the previously staunch supporters of the company and Mr. Samblis went to LieHub and publically apologized to the bashers for arguing with them in support of the company. The post is not all that unusual, as others have expressed sentiments indicating that the bashers have been right all along.
In our opinion, Mr. Samblis has squandered the opportunity to lessen the damage these recent events caused. It is well know, after many companies learned the hard lesson, that when unfortunate events happen, the company needs to get out in front of the issue by acknowledging such, apologizing if appropriate, and announcing actions and plans to avoid such in the future. There is a great article on the subject here. Companies need to communicate openly and honestly (brutally honest) with the investors and general public if they want to have any hope of mitigating the damage the unfortunate event has caused. The is another good article here about the tale of 2 companies who handled the same event differently and the resulting outcome. Here is a great excerpt from the article…
“The European manufacturers are making the classic mistake of trying to appear as victims,” Grabowski says, which is bad crisis management. There are three players in crises like these, he says: the victim, the villain, and the vindicator. “People don’t identify companies as victims because of their size and resources.”
It appears Mr. Samblis has attempted to play the victim in the Collins crisis. We think his actions, and the current PPS, affirms what these articles state about Mr. Samblis actions being “bad crisis management”.
Its never too late for an apology !