At “my companies”:http://www.untd.com quarterly earnings call, there were several interesting, and major announcements. While I obviously can’t comment for my company as a whole, I am somewhat baffled by how some people have reacted to the news we’ve given.
For several years we have been seemingly penalized for being a ‘dial-up isp’. Dial-up is dead, many people claim, and we were thus a dying company, despite being very profitable. I applauded the decision to sit back from the jump into broadband our competitors made, as it completely undercut their profitability. Still, we were penalized by analysts and big investors for not making the jump.
Well this quarter, our company announced how it’s diversification had led to sharp increases in numbers from the content and media segments (of which I am a part), and even more important, we announced our first foray into broadband ISP. This was marked by a solid plan for how to be competitive in the marketplace, without nearly the overhead that our competitors have needed to build.
And how does the market react? They didn’t even seem to notice the broadband development (as far as I have seen), the very factor that they have been stating as necessary for our growth. Some, such as the “Motley Fool”:http://www.fool.com/News/mft/2006/mft06110347.htm at least give some credence to the diversification, but still make *no* mention of the broadband.
I’ll never understand this stuff. At least despite some initial opportunists trying to play the stock, we’ve remained relatively flat in price.