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.
Wednesday, May 03, 2006
Guess at Guess? Inc (NYSE:GES)
Guess announces a delay in reporting Q1 earnings. They blame an April 27 SEC comment letter questioning their 2005 10K. In the same press release they provide substantial short term guidance on Q1 2006. Guidance is usually about future earnings. The release constitutes passive aggressive behavior against the SEC. The SEC comments relate to acquisition cost treatment dating back to Q1 2005. While Guess makes it to be a small problem, when you have to delay your earnings release, I see it as major.