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Over the past year I’ve noticed a marked increase in ‘questionable’ announcements from ASX-listed businesses. Long-term readers might recall how the now-delisted David Jones got itself in hot water after releasing a quarterly sales report that was marked as not market sensitive. This coincided with some director dealings that were not looked upon favourably by commentators.
Companies themselves determine whether announcements are ‘market sensitive’, and according to the ASX’s Continuous Disclosure rules, ‘market-sensitive information’ is information that the company believes
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Obviously, David Jones’ sales update definitely falls into that category. But what about companies that mark announcements as market sensitive when they might not be?
‘ had a minimal impact on the company’s sales, which were $164, 000 in the first quarter immediately subsequent to these (and many other) customer signings.
As far I am aware Reffind didn’t have have a website in its NZ ‘market’, let alone a sales team. It would have been more accurate to say that Kiwi customers had decided to use Reffind’s products.
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Any info on sales to date could have been put into the annual report under the ‘forecast’ or ‘outlook’ or ‘events subsequent to report date’ section, like so many other companies do. As to the marketing investment it should be asked whether a US$1 million investment in marketing is
That significant for a company with an A$140 million market cap, US$31 million cash in the bank, and neutral operating cash flows?
It’s noteworthy in the sense that it’s Yowie’s first big marketing campaign, but any reasonable person would assume that a company conducts marketing campaigns in its ordinary course of business. Other companies do this too, but their announcements are generally not flagged as market sensitive.
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Reffind and Yowie are far from the only culprits, with 1-Page Ltd (ASX: 1PG) also going through an ‘announcements’ phase – and let’s not get started on the speculative biotechs.
Market-sensitive announcements command instant attention from investors, but they can also be used by a wily company for a variety of purposes. Some companies might try to use them to pump up their share price (perhaps in order to raise capital at a better price) and to give the illusion of progress when there might not be as much of that as investors would like.
All shareholders should view market-sensitive announcements with a critical eye, particularly if they come in quick succession or appear to be trying to hype up the company’s success or prospects. It’s certainly better to err on the side of caution, but I encourage all management teams to consider if their latest announcement is
How Smart Investors Read Market Announcements From Asx Listed Companies
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Reffind and Yowie are far from the only culprits, with 1-Page Ltd (ASX: 1PG) also going through an ‘announcements’ phase – and let’s not get started on the speculative biotechs.
Market-sensitive announcements command instant attention from investors, but they can also be used by a wily company for a variety of purposes. Some companies might try to use them to pump up their share price (perhaps in order to raise capital at a better price) and to give the illusion of progress when there might not be as much of that as investors would like.
All shareholders should view market-sensitive announcements with a critical eye, particularly if they come in quick succession or appear to be trying to hype up the company’s success or prospects. It’s certainly better to err on the side of caution, but I encourage all management teams to consider if their latest announcement is
How Smart Investors Read Market Announcements From Asx Listed Companies
Retail Shares What has happened to the Baby Bunting (ASX:BBN) share price this year? August 27, 2021 | Rhys Brock It's been a volatile year so far for the Aussie nursery retailer. We take a closer look Read more » ETFs 3 ASX ETFs that invest in companies fighting climate change August 14, 2021 | Rhys Brock If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option Read more » ⏸️ Investing The Michael Hill (ASX: MHJ) share price poised for growth February 24, 2021 | Nikhil Gangaram Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest… Read more » ⏸️ Investing The Atomos (ASX:AMS) share price is up 15% in a week February 19, 2021 | Rhys Brock The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build… Read more » Retail Shares How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)? February 8, 2021 | Rhys Brock How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:… Read more » Healthcare Shares The Aroa (ASX:ARX) share price has surged 60% since its IPO February 4, 2021 | Rhys Brock The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.… Read more » ⏸️ How to Invest How to buy US shares from Australia right now January 29, 2021 | Mitchell Lawler If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market, … Read more » ⏸️ Investing Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders January 20, 2021 | Sebastian Bowen News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January Read more »
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