Auntie May buys a weekly financial business news. She reads the news. Unfortunately what she reads might not be true.
Some are based on rumours and speculation from sources who are NEVER named despite their constant, blatant inaccuracy.
And then sometimes the financial news are mere interpretations which are staunchly denied by the companies involved.
Which means Auntie May would never know what she reads is true or not unless she surfs diligently the Bursa Malaysia website!
Yes, Auntie May would need to seek confirmation from the Bursa website to confirm what she reads is true or false!
For example, in today's announcements posted on Bursa website, several announcements caught my attention. Yes, SEVERAL!
1. TOP GLOVE CORPORATION BERHAD (“the Company” or “Top Glove”) - Article entitled : Top Glove issues profit warning
- We refer to the article entitled “Top Glove issue profit warning” appearing in The Edge Financial Daily on Monday, 4 August 2008, page 1 and 4 and with reference to our reply to Bursa Malaysia Securities Berhad on 25 September 2007.
The Company would like to clarify that the Company has not issued any Profit Warning Statement. The headline of the article published by The Edge was merely its own interpretation from the interview carried out on 29 July 2008.
The Company is able to achieve a higher turnover in FY08 compared with last year, but lower than targeted turnover due to the weakening of US Dollar by around 8%.
The targeted profit of FY08 was affected by the unexpected surge in raw material prices and the inflationary effect. In particular, the oil price which has gone up by around 65% and the latex price increased by around 45% compared with last year. Also, the recent revision in gas price of around 72% by the government also affected the profitability.
However, the Company as always will endeavour to achieve better results than last year, with the commitment of the management team and with the continuous improvement of our glove quality and cost efficiency
- Pursuant to paragraphs 9.09 and 9.10 of the Listing Requirements of Bursa Malaysia Securities Berhad, the Company, after having made due inquiry on the above, wishes to confirm that the Company has never made any representation to such effect and hereby deny information contained in the Extracted C&C Report
- We refer to the above article in The Edge and wish to clarify that the story about the Company exiting the Mercedes-Benz business is unfounded and untrue. This matter was never considered by the Board.
We wish to draw your attention to the announcement of the Group’s first half results for 2008 on 30th July 2008 wherein the Chairman highlighted that having completed the restructuring of its operations, the Company is now able to concentrate on its Mercedes-Benz retail business and is better positioned to meet the challenges ahead.
We trust the above clarifies the matter.
Three announcements denying what was written by the so-called financial reporters. (ok, Hap Seng is co-related to Cycle & Carriage)
Isn't incredible?
Dear Moola,
ReplyDeleteYou know what's the most unfortunate thing about what you've highlighted.
Financially literate people will take what they read in the financial dailies with a pinch of salt.
Even more savvy investors like you take time to peruse through the Announcements on the Bursa.
However, Joe Public might not be even aware that the reports were way off the mark in the first place.
Let's face it, how many people actually peruse through the announcents on the Bursa...I'd say not many.
It's good that Bursa asks for clarification from these listed co. However, as you highlighted, we are missing the other part of the equation...
Financial dailies must be more accountable for what they write and publish... Otherwise..[sigh]