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The only update I can give you on the investor network is we’re rolling out an internal pilot for friends and family, and I’m hoping in the future to be talking more about that with a very excited tone.

That statement was made by Rich Daly, CEO of Broadridge Financial Solutions (NYSE: BR) on his company’s Q1 2009 earnings conference call on November 6.

He said that 11 days after we publicized the fact that The Investor Network was live on the web.

In fact, at the very time he uttered those words, any of the analysts on the call could have found that Broadridge was actually advertising on Google for people to join The Investor Network. (See the screenshot below)

Hardly what you would call an “internal pilot for family and friends.”

Screenshot of Google results page showing Broadridge ad for the investor network

Of course, Mr. Daly not pointing analysts to www.theinvestornetwork.com has nothing at all to do with the fact that this new project has been unable to attract even 250 members yet.

Nor does it have anything to do with the fact that individuals so obviously connected to Broadridge are anonymously touting the company’s stock, something regulators don’t look upon kindly.

And it definitely has nothing to do with it being a flop that won’t fly unless Broadridge manages to somehow convince a certain regulator to force every company in America to use and pay for it.

And that could well happen, according to Daly’s comments on the prior quarter’s call (Seeking Alpha transcript).

I really hope it doesn’t because Broadridge’s investor network is a poorly conceived concept that adds no more value than can be achieved using free software that is widely available on the web. And, judging by the lack of interest thus far, no one really cares.

A CEO who directly contradicts what is plainly visible to anyone who cares to look doesn’t inspire confidence in me.  I’m no longer a shareholder.

Disclosure: no positions

Source: Is Broadridge's CEO Out of the Loop?