Jabil Drip Disclosure

Jabil (JBL) announced their earnings and would have you believe that cash flow is healthy, cash position is strong and they are weathering the current difficulties rather well. Quarter ends on feb 28, 2009. Then they let this one out. Potential goodwill impairment appears likely and they are doing the tests. They claim the impairment is being triggered because the stock is dropping and the economy does not look good. Thanks for that.

The impairment charge will be effective Feb 28, 2009 but disclosed in April; so the numbers you are supposed to rely on will change. But this seems OK under disclosure because they are announcing that their disclosure will be modified by future disclosure. Reg FD covered by a shroud.

But in all this confusion about difficult markets, changing valuations the dividend remains unchanged. Unless they change it in the future. But right now they have not announced any changes.

If you can understand this post (for whatever reason) just sit and think about thinks. Now is not the right time to make any major moves anywhere.