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VTSS Conf Call

Just off the Vitesse Q208 Investor Conf Call. Not sure what kind of logic goes into an investor asking a CEO why he doesn’t resign – such questions should be addressed to the Board, not the CEO. If he is so burnt up there is a market for his shares and he should sell them.

The incident is positive in a way: I have found that many small-cap companies simply don’t take calls from anyone they don’t know. The fact that VTSS takes calls from all in the queue is a sign of openness. Other companies, including IKAN and others (yes I keep a record) practice what I call “Queue Management”, taking calls only from people in the queue they know to be friendly.

So, to the investor who asked the question – at least recognize the fact you were allowed to have a voice in the first place. Most companies wouldn’t have allowed you even that. And next time just take your loss and don’t waste my time.

Discussion

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  1. I like it when small cap companies open up their calls to anyone because a lot of them don’t have very many analysts following them to begin with. Having investors ask questions gives management a chance to address the concerns that are out there. The downside is that you lose a certain amount of professionalism in the process. I was listening to a call the other day where someone was actually pranking the CEO. They ended up cutting him off, but it put them into a really awkward position. I suppose that when you are a small company you should be happy with whatever attention you can get, but having to deal with crazy screwballs shouldn’t have to be part of the process.

    Posted by Davis Freeberg | May 12, 2008, 6:04 PM