One reason some people refuse to buy stocks that trade in Canada is this sort of thing. I'm not aware of any "good" reason. I was told that they get the information to market makers before releasing it publicly. This "helps" the market makers "manage" their inventory.
FWIW, I've also "heard" that the actual business is going great: demand is way up for the "tools", well beyond what they anticipated, and, a major contract for Xyloy is starting to be delivered on. And, they're building backlog, and looking into adding production capacity.
IF all this is true, it "should" show up in the 3rd Q '97 numbers. To be released, probably, by the end of August.
If you think about the current price of the stock in relation to its historical price, and in relation to the company's progress, it's clear that what's holding it down is this BS about accounting procedures, timing of reporting, and over-enthusiastic projections. All stuff I put in the category of "talk". If the talk had been handled more conservatively and in a timely fashion, but nothing else was changed (i.e., the actual business), what do you think the stock would be at? IMHO, it would be a LOT higher.
The bright side of this is that I "think" KK and DD have gotten the message.
FWIW.
-DT |
