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May 24, 2006
Investing To Get Outta Debt - Agitated with Annual Reports
Ever finished reading one and wondered: What on earth is going on at this company? I certainly have. Some management discussion and analyses offer little more than breathless cheerleading about a public corporation's purported accomplishments, while skillfully avoiding sensible discussion of genuine business challenges. Other reports deluge the reader with reams of opaque financial data, which leave investors no closer to understanding the opportunities and risks of the underly¬ing business. Some entirely fail to mention things you'd really like to read about—you know, those wacky related-party transac¬tions or the under-the-table payments to senior executives, for instance. And don't get us started on companies that encounter chronic difficulties getting their reports out accurately, or on time.
Not all reporting is so opaque. However it certainly raises skepticism when it comes down to trying to gain headway in your personal finances. I am a full time entrepreneur and have dabbled in the stock market and reading through report after report not only created nauseam, there is always a sense of distrust going on. I know the company who produced the report is trying to paint a beautiful and rosy picture of how the company is doing. One could say it’s a bit of spin doctoring that’s going on. Companies can get in severe trouble for not reporting accurately however if they manage to create confusion and put the right spin on the numbers it can certainly leave the average investor under-informed.
There’s my little rant for the day. I must go and try to make sense of a few annual reports now. Why so long? Why not just tell it like it is? Save me some time – If you tell me things are going wrong, say it. I will trust you in the future. Maybe even buy your stock now if it’s at a low. Wouldn’t that be nice Mr. Big Company – Yes, if you were just blunt in your annual reports I just might be more inclined to jump in a pick up your stock. Ok…I am frustrated with these things. Maybe if somebody could help me in reading these things…if you can please leave a comment (Click on Comments below and scroll down to the bottom – Your real name is not necessary – Just looking for any tips on reading these stinkin’ reports)
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