Press Release Flurries

Beware the company that issues flurries of press releases. Just as winter flurries obstruct vision for drivers press release flurries obstruct vision for investors. If a company feels obligated to disseminate regulatory information at almost every turn of the business wheel then maybe its not business but a card game. Card games are unpredictable and contain many features beyond control of managers and investors. Casinos are not stock exchanges. Yet companies insist on issuing flurries of releases. This strategy, much akin to a duck beating the water with its wings before attempting to take flight, is designed to create the impression of much underlying business activity.

Bill Carrigan an independent stockmarket analyst writes on Aug 14 in his Toronto Star weekly column "Getting Technical" ".....Companies typically issue countless press releases in third up-leg advances in order to keep investors upbeat on the company's prospects and to invite new investors to the table-or trough"
Third leg is frequently the final leg. Many including I hold the view that press release flurries do indicate the end of the line.

Check out Bill Carrigans web site www.gettingtechnical.com. I have no connection with Bill Carrigan but find his insights useful.