Tuesday, October 13, 2009

Black & Decker Reg FD Challenged

Black & Decker (BDK) issued a Reg FD challenged communiqué. Ignoring what some would describe as a quiet period they issued a press release announcing the almost certain probability of higher EPS. Quite frankly the EPS will be double of previous guidance. The real numbers come out in just nine days on Oct 22, 2009 In the meantime we are asked to pay attention to Nolan D. Archibald, Chairman and Chief Executive Officer when he says that sales are better than forecasted. Then he goes on to say that much of the sales were expected to occur in Q4 and they actually came in on Q3. What he does not say is what the plan is in Q4 now that we know significant parts of it fast forwarded into Q3.

This is not really guidance. It plays to short term trading and does nothing for long term investors.