Thursday, February 21, 2008

Stanley Works Updates But What Did You Say?

Stanley Works (SWK) announced that they updated investors and analysts on the company's growth strategies and key initiatives on Feb 21 . Mr. Lundgren Chairman and Chief Executive Officer, commented:

"Today we updated Wall Street analysts and investors on the exciting growth, cost reduction and asset efficiency initiatives that represent the heart of our day-to-day efforts. We highlighted the Stanley Fulfillment System whose benefits began to show in the form of considerable inventory reductions and cash flow growth in 2007. Along with a solid long-term strategy, brand and new product vitality and continued execution, we are confident in the prospects for continued growth in the coming years."

The press release issued at approximately noon Thursday Feb 21 really did not say much. If they several hours with analysts et al surely they said more important stuff than the above paragraph. If there is an update that means there is some kind of disclosure that has occurred. Just saying we are doing good and thanks for your support is a little weak.

The press release had approximately 1744 words. Of which 989 were boiler plate legalese that is standard in all disclosure communication. If you go to the corporate web site you will find a 92 page PDF document that is available to all. The document is what they talked about with the analysts. This document is not filed with the SEC whereas the abbreviated press release was. I am guessing that the company will eventually take down the investor meeting from their web site as they are not legally obligated to maintain it.

So Stanley, why not file the 92 pager with the SEC? It just looks suspicious. It’s all about the transparency these days and this one does not measure up.