Forum Archive Index - September 2003

["Dave Missen" <d.tackle@xtra.co.nz>]

Morgy

 

You certainly have a point regarding the quantity of BS put out by different companies in both Annual Reports and general media releases.TWR was a prime example - in the first half of the year announcing an increased profit target based on previous year and then immediately before end of financial year showing huge losses instead.

 

Following Enron et al SEC have made lots of noise about improving standards of reporting/transparency etc.  NZ has followed suit via Securities Commission (the latest consultation on Governance Standards is a good example).  Truth be known, if news is bad the companies seem afraid to tell us, and if its good they seem to overplay the positives.

 

Guess that could be a dark part of human nature which no end of Securities Commission rules/guidelines will overcome.  Perhaps the problems also lies in the wide interpretations given/taken for GAAP.  I see that the bean counter Bruce Sheppard had aligned himself with a company that has gone belly up at a cost of in excess of $20M to shareholders - small change compared to the writedowns of Fletcher Forests which have thus far cost their shareholders in excess of $1.9B.  It seems no amount of correct financial reporting would have introduced those losses to their shareholders in time for some shareholders to avoid taking a bath unless they had advance notice (which is apparently illegal and called insider trading).

 

Dave

----- Original Message -----

From: Morgy

To: sharechat@sharechat.co.nz

Sent: Friday, September 12, 2003 5:44 PM

Subject: Re: [sharechat] WRI 2003 report looks VG to me

Dave

 

Given you comments in the first paragraph of your post , doesnt it take some of the gloss off the enjoyment knowing its a bunch of BS ?. The SEC and directors are in the same bed, the SEC has as much teeth as my old granny, particularly at bed time when they are on the side table. Can you name a breech of the companies act or listing breech as regulated by the exchange that has been punished with more than a slap on the wrist with a wet bus ticket in the last 15 years, if there is one I would be surprised, if there was two I would be stunned and would promise to read an annual report as punishment.

 

Not related but along the same lines I would throw majority shareholders and stockbrokers in with the same crooks ( a rather full bed I know), look at what are American and swiss friends (Fay Ritchwhite) did to Tranz Rail, the greatest raping in NZ corporate history and then dumped on the NZ public.

 

Regards

 

Morgy

----- Original Message -----

From: Dave Missen

To: sharechat@sharechat.co.nz

Sent: Friday, September 12, 2003 2:31 PM

Subject: Re: [sharechat] WRI 2003 report looks VG to me

I agree with your sentiments Snoopy

 

I certainly wouldn't invest in anything without a close look at performance as described by their annual report - I look forward to the day that annual reports are more meaningful and accurate, perhaps the new requirements as put forward by the Securities Commission will be beneficial.

 

As an investor I always "eagerly" peruse every annual report that emanates from a company I have investment in - this is always followed by a ratio analysis in an effort to determine how well the company directors are looking after my investment in their firm.  While I am the first to acknowledge that the annual report is often a somewhat sanitised version of financial health (Tower is the best example that comes to mind), I have found that it does provide a starting platform for  analysis.

 

I look forward to the day when greater transparency is provided through the annual reporting process (same applies to 6 monthly and even quarterly results).

 

Dave

 

----- Original Message -----

From: <tennyson@caverock.net.nz>

To: <sharechat@sharechat.co.nz>

Sent: Friday, September 12, 2003 1:34 PM

Subject: Re: [sharechat] WRI 2003 report looks VG to me

> Hi Morgy,
>
> >
> >Nobody,  but nobody "eagerly"  peruses company reports,
> > Surely not?.
> >  :-)
> >
>
> I find I take particular interest in news that personally touches me.  And
> what is an annual report if not a 'news update'?
>
> As a shareholder, I'm the boss Morgy.    It is only natural I should take
> an interest in what my employees are up to.   Particularly when they
> have the capacity to alter my own pay packet by what they do.
>
> >
> > Disclosure: Never read a publicly listed company report, ever
> >
>
> Have you ever held a share long enough to think of yourself as an
> owner Morgy?  I guess not ;-(
>
> SNOOPY
>
>
> --
> Message sent by Snoopy
> on Pegasus Mail version 4.02
> ----------------------------------
> "Dogs have big tongues, so you can bet they don't
> bite them by accident"
>
>
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