Either:1 The managers dont care about the share price - which...

Either:

1 The managers dont care about the share price - which seems unlikely, and is treating their shareholders appallingly

2 They are trying to rescue the company and early disclosure would ruin the discussions

3 They realise that there are/might be more significant problems that if they detailed these to the market then that would worsen the shareprice.

The directors CANNOT come out and reassure the market if they are not assured themselves - they are then subject to breach of the disclosure laws. Coming out and restating the obvious (ie all that is in the media articles) is only going to compound the problems.


I suspect that they are caught between #2 and #3.


At the moment, things likely to bump up the SP are -

Heads Rolling
Takeover (external / management buyout)

Lessening of their debt load by either asset sales (which will depend on the price obtained for a distressed sale) OR
External institutional buy-in to support the company (which would be dilutional on the shareprice)

Obviously there may well be relief rallies associated with short covering in the mean time (and general movements in financial stocks) - but to expect the management to come out and magically explain away all their problems is somewhat naieve.