Monday, May 17, 2010

ITW When is Wrong Illegal?

Illinois Tool Works (ITW) issued something that looks like an earnings release without substance. For a large cap company with supposed good news the detail was inadequate. Investors cannot make a buy sell or hold decision on the information. The Board cannot say it has met its fiduciary duties to the shareholder. Management cannot say it has complied with Reg FD. Even a conference call is not scheduled at some point in the future.

The communications strategy is suspicious. The agenda’s are hidden. The stock is selling off. Red flag in front of class action lawyers looking for work.

Disclosure: No position in this stock