Yes, GaBard ... more tutorial for the observers ...
It's very common for company officers to NOT understand the
details of the SEC filings of the stock of their own companies,
especially in cases like this where there are lots of details.
It's NOT UNEXPECTED for company officers to make informal mis-guided
statements ... you have to be very careful about what you believe.
Remember, it is the company officers business to be good at their
jobs ... managing, selling, negotiation, planning, controlling,
directing, designing, implementing, etc, etc, etc.
It is not a typical business skill to understand the ins and outs
of SEC regulations ... that's why companies have business lawyers.
When a company is under pressure, as Arcon is because of these
favorable developments, it's very common for company officers to
slip outside their area of expertise and simply say wrong-headed stuff.
It happens all the time. The bigger the company, the more layers
there are between the company officers and the public ... for exactly
this reason, big companies have investor relations departments ...
where the prime skill is being very good at knowing what to say
and when to shut up.
This is a very small company ... and here we see officers who simply
do not have that specific business skill of knowing when to shut up.
The main trick is learning to be clear within yourself about WHY
you believe something.
There are levels of reliability. Assign a level of belief that goes
with the level of reliability. In order, they are:
- the SEC filing documents
- audited financial statements filed with the SEC
- company directions to the transfer agent
(changes made according to the rules specified in the SEC filings)
- company press releases
- legally binding commitments by brokers
- informal statements of company officers
- informal statements of brokers
- anything you may read here (including this!)
That's why we are constantly harping on the theme of doing your OWN
research ... you don't KNOW the facts until you are holding the SEC
filing documents and the press releases.
You may see a lot of anger or bickering about who said what to who.
Now you can understand why this happens, and you can ignore it because
you know how to get the real facts, eh? |
