Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Friday, January 20, 2006
Fastenal Bizarre Financial Reporting Sequence (NASDAQ:FAST)
Fastenal Company (Nasdaq:FAST) has a bizarre technique in reporting financial news. One day after trading it announces the dividend. The very next morning before market open it announces its earnings. I know you get to make two releases over two days and try to get your name out there, but consider this scenario. Usually dividends are good news and investors can at least enter orders for the very next morning assuming the news is favourable. Scary to think what would happen if there was a tough quarter, which almost everyone has from time to time? The lag effect may be parlayed by the nimble and astute. Is this a secret sign like tugging at your ear??