Misleading Article: Tamco Part II

Blogged last night: http://everything27.blogspot.com/2007/06/tamco-misleading-article.html

In this incident, the source had clearly insinuated an extremely price sensitive statement.

• Tamco Corporate Holdings Bhd is mulling a plan to dispose of its core switchgear manufacturing operations to a foreign investor. The deal, if closed, would land it a neat cash pile that could potentially be distributed to shareholders.
  
  Sources reveal that Tamco may get as much as RM388 million in cash if the deal goes through.
  
  On a per share basis, if all the cash is distributed, Tamco's shareholders could get up to RM1.50 per share. However, the disposal will leave Tamco without a core business, which means it will have to acquire a new one.

A cash distribution of RM1.50 per share when the stock was trading only in the 90 sen region.

This clearly drove the price UP.

So now that Tamco has said that it was unable to comment on whether a cash distribution of RM1.50 per share will be undertaken, do you reckon that the reporter should be questioned who the source was?

Yes, my dearest reporter(s), please tell us who your informer(s) are! Just who are your sources of constant misleading information?

Don't you want to see integrity in our financial news?

Now, this Tamco story was published on the Edge Weekly. The denial was posted on Bursa Website. So for the common news reader, if such constant denials were to continue to happen, then how would these news reader know if what they are reading is true or false?

Don't you think it's extremely ludicrous to ask the readers to refer to Bursa website to confirm the news that they had read is true or false?

If this is the case, then I strongly suggest each FINANCIAL NEWS display a huge disclaimer informing their readers that what they read could be false!

Or PLEASE REFER TO BURSA WEBSITE TO CONFIRM THE NEWS THAT YOU HAD JUST READ IS TRUE OR FALSE?

Simply ludicrous, isn't it?