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, September 01, 2006
Bristol-Myers Guidance
Bristol-Myers (NYSE:BMY)has reduced guidance because of the impact of Apotex competition. With a tip of the hat to financial reality the timing of the reduced guidance is suspicious. Given legal positioning BMY may now claim huge losses in any further legal action. Why did they not choose to identify these potential damages in the past and reflect those scenarios in previous guidance. Most investors may be able to analyze an operating company. But how do you analyze a negative legal perspective that develops over time. Only management could identify the risk and quantify it for investors. Many have been flying blind.