When a stock is “hot” it can announce news of no import whatsoever and its shares zoom. When the “believers” start to ask about the Emperor’s new clothes in detail, when faith clashes with uncomfortable reality the reaction to such PR fluffery is negative. Blinkx (BLNX) is now in that phase as it refuses to deal with the fireworks delivered by Ben Edelman on April 5 at the UK Investor Show.
I have noted this phenomenon of how PR fluffery becomes a sign of desperation and is actually counter productive when a company cannot deal with hard questions before in relation to Globo (GBO) HERE. Blinkx yesterday served up some total non-news about a new partnership and its shares fell. The financial import of its latest deal will be negligible and it knows it. So do investors.
And so to Edelman. The strategy here has been to persuade thick journalists such as Harriet Denys of the Telegraph and Bryce Elder of the Financial Times to run with the line, or should that be lie? “Edelman said nothing new on April 5 so there is no need to comment.” Or “There were no fireworks.”
Hmmmmm. Bryce you may like to suck PR
on Shareprophets | Comments