Beware: Company Filings:

• Often times in order to bury a bad earnings report or any bad news, the company may look to disseminate the release at the time when they expect the fewest people are watching. In the 1990’s companies would send out the release after the close of trading on a Friday, even better if it was a holiday weekend. Additionally, they might choose a date when they were sure that a variety of important economic data was also set for release, thereby ensuring the spotlight was not on them.

• Companies are expected to follow “full and fair disclosure” by releasing both the good and bad information about a given quarter. Often, the company will attempt to minimize the negative impact through the use of certain phrases and words. “Challenging”, “pressured”,”slipping” and “stressed” are key words that should be viewed warily and may even be red flags. Also, much of the negative information tends to be near the bottom of the release.

• Often, releases will contain “BOLD” or “italicized” headlines and information that they want the investment community to focus on. It is simply a ploy that takes advantage of reader laziness. Read the entire release to ensure you are better able to gather a full appraisal.

• There is great debate as to the benefits of stock buybacks. However, some companies will announce a stock buyback in conjunction with or just  following bad news to elicit confidence.

• As with the announced buyback example, some companies will announce a new customer, a large order, store opening or new management hire at the same time that negative news is being released.