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Technology Stocks : Digital Equipment Corp. (DEC)
DEC 14.57-5.3%Dec 11 3:59 PM EST

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To: Mike V. who wrote (2667)1/6/1998 10:04:00 PM
From: vegetarian  Read Replies (1) of 3276
 
Why would they make it a policy to not preannounce AND tell shareholders that? that would look very uncaring and callous to share holders. Can't see any logical justification to do so.
The purpose of preannouncing is to avoid shock treatment to shareholders and show some concern for shareholder value (not sure if it really does it, it may just change the dates on the inevitable).
Also, with such large companies (specially, DEC where insiders neither buy nor hold) if the company clearly sees a shortfall there is no reason to not warn; of course all this is just based on simple minded thinking which will probably not work in practice.
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