Getting around SEC "uniform disclosure" rules?
A suspicious person might think that the "calling around to analysts and asking for financial models" is a way to tip-off the analysts to alert their clients. In the old days, companies just alerted their friendliest analysts. But under the new SEC rules, in place for a few months now, every Tom, Dick, and Harry has to have some access. In practice, this means a full-blown media event, so that CNBC, CNN-FN, and the newspapers, press, etc., can cover it.
So how does a company tip-off their friendliest analysts without violating the SEC rules?
"Um, could you fax us your financial models you are using to get the current recommendation and estimated EPS?"
(Translation?: "We have some adjustments about to happen, but we are not yet ready to hold a press conference. Do with this "request for details of your model" what you need to do."?)
Just a theory. My theory. It's a free country...sort of.
--Tim the Suspicious |
