Ann: Webjet seeks to clarify inaccuracies in analyst report, page-29

Agreed. I’ve written to Webjet’s PR woman in thanks for a much-needed and timely response. Companies sometimes don’t respond to these kind of reports in the belief that it looks defensive and gives oxygen to an otherwise laughable commentary. I’m always glad when they do.

Regarding the good point you made, I’m writing to the Minister for Finance, ASIC and as many relevant bodies as I can think of, asking for a law or regulation to be made that would require anyone – individual or company – to disclose their position in the company they’re offering advice on. This is so basic I’m perplexed about why it’s not already a law, in the same way that financial journalists and advisors have to make such a disclosure. Not to do so is blatantly corrupt.

I suggest all investors write the same kind of letters to their local members, Minister for Finance, etc, so there’s a clear sense of outrage and weight of numbers. Who knows, it could even be a campaign similar to the one that got us the Royal Commission into banks. It is mind-boggling that it’s still legal for companies with a clear conflict of interests and potential to cause financial damage, to be offering advice. Crazy too, that people still listen to these jackals, but you can’t legislate against stupidity. Do we really need a market-led GFC to get this point across?

The following chart comes from another HC forum I was on when I was invested in Bellamy’s. It shows the share price and the “advice” from Goldman Sachs, who were shorting Bellamy’s at the time. I think it is relevant to WEB and every company.

i