Answers Corp. (NASDAQ:ANSW) reported decent black ink and wants investors to think they have the answers. Bob Rosenschein, Chairman and CEO did not offer any specific direction and would only point to competition and say they are being copied, so look at the value proposition. Hey Bob, did you ever consider that maybe the competition thinks they know they're knocking you off?
As Answers.com becomes more successful, of course, it will attract attention from competitors. The trick is carving out enough market share so that it will be sustainable.
Let's analyze Rosenschein's comment: “Going forward, we intend to invest more in expanding our core business and creating new product extensions. We are looking forward to a great 2010.” This nugget of info is just too bland to engage investors.
The agenda becomes too secretive and creates an insider culture. Watch for surprises in this stock as management is playing it too close to the vest.