Saturday, February 28, 2009

Duff & Phelps Rebuttal To The Balance Sheet Issue

Duff & Phelps (DUF) is upset with my post. They sent me the below quoted email asking for changes or retractions. Here is the point that I believe they are not comprehending correctly. Financial Statements are critical documents. When you issue a press release which investors are supposed to rely on, why not include the entire financial statement? Why are some parts of the financial statement included and some parts left out?

There is no question in my mind that Duff & Phelps (DUF) filed with the SEC. As a matter of fact the balance sheet is on page 26 according to their corporate communications people. In an era of corporate communication message positioning you have to wonder why the balance sheet is on page 26 but other facts are highlighted in high profile press releases.

So I ask readers to go to page 26 of the latest 10-K. Check out the Consolidated Balance Sheet and tell us if you believe this is helpful in developing an understanding of the company. We all know that the Consolidated Balance Sheet was not in the press release. Perhaps the Duff & Phelps would like to explain their strategy in drafting the press releases in general and of course the latest one in particular.

By the way I am not happy that the SEC has created a disclosure environment that creates this type of dynamic.

Here is the email request from their communications/investor relations advisers.

"George – inexplicably, you posted a note concerning Duff & Phelps and their alleged failure to provide a balance sheet yesterday. Please see the attached, which is the Company’s 2008 10K filing. This document was made publicly available in conjunction with earnings. I would direct you to page 26 – a full consolidated balance sheet.

I am certain your service to your readers includes providing accurate information, and with 20 years of financial and investor relations expertise under your belt, you are no doubt savvy enough to distinguish between hyperbole and fact; accordingly, we suspect you will take the time to correct the erroneous posting concerning Duff & Phelps.

Many thanks
Jon Morgan

Jonathan Morgan
Perry Street Communications
1801 N. Lamar St., Ste. 450
Dallas, TX 75202

(w) 214-965-9955
(m) 212-333-5525"