As we have said before…. no news is not a good thing in penny stocks. Now its only been a week since the breakup, and we understand the CEO is probably pretty busy, but none the less, that week would have been a good time to keep up communications with investors. Communication is extremely important when it comes to penny stocks. Investors start to get nervous when there is silence from the company. Investors hear all too often about penny stock companies going “dark”… i.e. cutting off all communications with the investors, and that is usually the early warning sign of a company is not doing well, and in many cases simply closing up shop. You will hear many investors talking about investments they got burned with saying… I should have known because they stopped all communications… i.e, went dark.
Now, do we think Mr. Samblis is closing up shop… no, but there is no way of knowing that if he keeps being quiet. We feel, he missed an opportunity to get out in front of the Punch/Collins scandal, and now we also feel he is missing another opportunity to keep investors informed about the current state of affairs and any plans that may be known at this time, subsequent to the divestiture . In medicine they call it the “golden hour”… that’s the hour immediately following the medical emergency. Get medical attention during that critical hour and you have the greatest chance of survival. We believe its the same here… there was that critical time immediately following the Punch/Collins news release, and that time was wasted, and now we have another critical period of time in which communication is critical, and this time appears to be being squandered also.
Perhaps the silence is because there is little news yet, as plans are not finalized. Fine, but keeping completely quiet because the complete and finalized plans are not solidified yet is the wrong way to approach the communications dilemma. Inform the investors of something… anything, just to show nervous investors you are not taking the company dark. Investors get nervous in times like this, and when investors get nervous they do what is safe…they sell. Show up and say you can’t say anything yet (wouldn’t recommend this but its better than silence) however you will keep them up to date as much as possible.
Please… don’t miss this golden opportunity to reassure nervous investors about the new plans. Most investors in PNCH are extremely nervous right now… and who could blame them after the recent scandal. They need something… anything… to be released. The “golden hour” window is closing, and you can’t get it back… don’t squander it, please !
If you agree, or maybe you disagree… make your views known by selecting to comment on the post. There is a link at the top-right of this post that will allow you to leave a comment. Let YOUR views be known… perhaps if enough investors make their views known, the CEO may reconsider his silence.