sigma off the bourse

Investors need to know why Sigma is off the bourse

* John Durie
* From: The Australian
* March 05, 2010 1:00PM

Investors need to know why Sigma is off the bourse

SIGMA will remain off the bourse today, and possibly well into next week, but it could turn out to be very much a storm in the tea cup.

Since the company withdrew its stock from trade last week, the market has been speculating just what has gone wrong, who has pocketed how much, is chief Elmo for the high jump . and on it goes.

In all probability, it will be none of the above and while, yes, earnings guidance will change from slightly positive to negative something, that may be the end of it.

Sigma chair John Stocker isnt helping things by saying nothing and the longer the company stays off the bourse the more the worse will be feared.

There is no ASIC or other regulatory involvement.

Instead it seems that after the line was drawn through the January 31 accounts, auditors PriceWaterhouse Coopers told the board they should maybe change the way the accounts are presented and keep some forward sales out of last years numbers and keep them in this years figures.

Boards and auditors have got conservative in the wake of the financial crisis.

Once PWC started waving a red flag, Stocker felt the need to go right back to square one so that, when he does present to market, everything will be in order and by the book.

Far better this than updating the market progressively and maybe in the process getting things wrong.

It seems that if the corporate cops want to talk tough about continuous disclosure, then some boards will say, OK, well take our bat and ball home until we are sure about the quality of the cricket we can offer.

Hopefully, that is all that is involved, but Stockers caution makes it impossible to be definitive, until he finally confides in the market.