The market responded with a big bounce for the stock price of Sinclair Broadcast Group on Wednesday following the company’s announcement that it had repackaged its anti-Kerry program to more resemble news. But it only bounced about half-way back from losing 17% of its value since it announced that it would air the anti-Kerry propaganda film “Stolen Honor.”

Originally, the hour-long special program was to include the 42 minute film, followed by a panel discussion. Now the program is going to use excerpts of the film and include a panel discussion. The market’s response to what critics consider to be cosmetic changes may, however represent wishful thinking on the part of the investor community. Indeed, boycott activists and wary advertisers appear to be unmoved.

Most of the businesses that have pulled thier ads from Sinclair stations seem to have been local and regional businesses like law firms, car dealers and restaurants. But national advertisers have been feeling the pinch too.

The Associated Press reported on Wednesday that: “U.S. Cellular Corp., the nation’s eighth largest wireless telecommunications provider, has asked Sinclair affiliates not to run its commercials two hours before, during and after the program’s airing, said President and CEO John E. Rooney. Nationwide Insurance said it “plans not to advertise during this perceived politically motivated program if Sinclair Media elects to broadcast it without fair and equal opportunity for response.” And Regis Corp., an operator of haircutting salons, said it has asked Sinclair not to run any of its ads near or during the program.”

Burger King issued a statement late Wednesday that indicates it was unimpressed with Sinclair’s news makeover. The company says it “will not permit its advertising to air during certain politically controversial programming on the Sinclair Broadcast Group’s television stations. Burger King Corporation does not endorse any candidate or political party. This action will only affect one day of advertising in a total of nine local markets in which the Company had previously scheduled local media advertising.”

Reuters reported: “What the market perceives is that Sinclair has backed down — and now all the problems will go away,” said Blair Levin, an analyst at Legg Mason. Levin said it was unclear, though, whether the company’s critics would be appeased by the company’s move and the potential impact of the controversy on its advertising.”

Indeed, far from being appeased, Nick Davis, founder of the Boycott Sinclair Broadcast Group web site, stated in a press release: “Our goal is full surrender, not a broadcast on FCC-regulated public airwaves that skirts the responsibilities of free and fair reporting and violates equal time standards.”

Meanwhile, local businesses, the advertising backbone of the company, are still pulling out. For example, a front page story in The Daily Hampshire Gazette in Northampton, Massachusetts reported on Wednesday that at least five area businesses have pulled advertising from WGGB, (Channel 40) the Sinclair-owned station in Springfield, Massachusetts: Dana Automotive, Kaoud Oriental Rugs of Holyoke, radio stations LAZER 99.3 and Rock 102, and Atkins Farms. Keith Parvich, the general sales manager of Dana Automotive told the Gazette, “As a heavy advertiser, we were concerned about how our relationship with Channel 40 was being percieved — this is a very dangerous precedent for a station to be setting, Parvich said. We aren’t here to take any political side and alienate our cutomers.”