Forum Archive Index - September 2003

[Robin Benson <rob@hammerheadmedia.co.uk>]

Annual reports represent a range of opportunities for both businesses 
and investors.

The options range from producing a document not only not worth the 
weight of whatever its printed on (or worse, a liability) to a 
thoroughly informative update, from the perspective of management and 
others, of how the enterprise is going, what's in the pipeline, and how 
they're going to tackle what they see as the future. If the investor 
sees some common ground with their own views, then that might be a 
positive indicator for them.

Of course, investors would be wise to maintain a healthy cynicism as 
with all sources of data. That said, would you invest, or continue to 
hold an investment, in a company that routinely fills its annual 
reports with generous amounts of horse manure (fertilizer suppliers 
notwithstanding)?

Indeed, your answer may be yes if your trading strategy doesn't include 
such things as management statements, but some investors invariably 
consider such data and if they feel they are being misled, act on that 
also.

You could also say it's a mechanism to have something "on the record" 
from management and auditors. How accountable management are for such 
material varies, and this in itself will could be a factor for 
investment decision-making. Would you invest in a company whose 
management, ultimately, behaved as if they had no accountability (some 
might of course).

Regards

Robin

On Thursday, September 11, 2003, at 01:00 PM, Morgy wrote:

> Harry
>
> Nobody,  but nobody "eagerly"  peruses company reports, Surely not ?.
>
>  :-)
>
> Disclosure: Never read a publicly listed company report, ever
>
> Regards
>
> Morgy


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