According to Sources

Let me ask what I have been asking all this while.

What purpose does our financial news serve when it publishes nothing but based on unconfirmed sources?

Think about it.

Or is our financial news merely a tool to push up shares in the share market?

How?

Have a look at this article: Taking Mycron private - Melewar considers taking company off Bursa Malaysia.

• MELEWAR Industrial Group Bhd may be looking to take its subsidiary Mycron Steel Bhd private, sources familiar with the matter tell BizWeek.
  
  It is understood that Melewar is likely to make an offer of between 70 sen and RM1 for the shares in Mycron Steel it does not already own.

According to what sources?

The tea-lady? Or the driver? Or the toilet cleaner?

What sources?

It is understood. Say, who is understanding what??? Based on what facts?

• “Many things might happen, they might even hive off Mycron Steel, as the price could be attractive, with the strong rates for cold rolled coil steel, which is Mycron Steel’s bread and butter,” an industry source says.

Huh?

Com on.

Financial news should be based on facts, right?

If our entire financial news reporter started writing based on 'Many things might happen', just imagine the consequences of such blatant reporting.

And of course, you would note the 'Industry source'.

And when so much sources is added, have a look at this announcement:

MYCRON STEEL BERHAD - ARTICLE ENTITLED : "Taking Mycron private"

• We refer to the query letter dated 27 November 2006 issued by Bursa Malaysia Securities Berhad in respect of the article appearing in The Star, Bizweek Section, Page BW3, Saturday, 27 November 2006.
  
  The Company wishes to inform that the Company is not aware of such intention to privatise the Company.

How?

For whom does the news article serve?

Or can our financial news reporter write as they fancy??

And sometimes, don't you think it is a waste of time that the plc mentioned has to divert their time from daily business schedule just to reply to the Bursa Malaysia.

Wouldn't it better if such reporters would refrain from writing such articles?

Perhaps, they might consider writing for a comic where all mystical sources live in their fantasy world? The best of sources, eh?

Now that would be an excellent idea, wouldn't it?

Or perhaps how about their news editorial posting a disclaimer such as this below:

• Disclaimer
  
  The following news article is based on sources which really could be anyone. It might be the tea lady, the driver or even the toilet cleaner. The reporter is allowed as creatively as possible for this creates the much needed excitement in the stock. Now think about it. Who wants a dead market right? Hence, the editorial feels that it is ok that our financial news is based on sources and more sources.
  
  And because of this, the editorial would like to remind all readers to take our financial news as seriously as possible.
  
  Thank you