The Eck Effect, page-76

Hi Tsuba

I notice your earlier request for comment.

I have no idea what practice an individual CEO might adopt to monitor changes in a company’s register. I would expect that most would ask their registrar to keep them informed should any notable changes arise.

In reference to your suggestion of the controlled release of relevant information, this is not an option for any public company management. Any information considered of relevance to the share price, positive or negative, must be released immediately.

It is not the function of management to manipulate the share price in order to avoid or counter price falls. Its function is to grow the value of the business that its shareholders have invested in. Once profitable, share prices follow as a result. Before then they are subject to the rational and irrational decisions of market participants.

I can think of several examples where a company’s management has hyped its share price artificially by ‘over optimistic’ announcements. Once found out, management then suffered the wrath of shareholders induced to buy at artificially high prices. I see no evidence of this in Cellmid’s record of information release, which I believe has been very objective and professional, with management concentrating solely on the business its shareholders are expecting it to grow on their behalf.

Cheers