I have noticed since investing in FLC, the ASX has given listcos incredible leeway in the making of forward statements. Case in point, announcing of MOUs. In Singapore, for instance, MOUs are not enough to make an announcement but it’s allowed on the ASX. Only confirmed contracts can be announced.
It’s good and bad depending on how the info is used. I use it to get a picture of where the listco is heading, where it’s building it’s comparative advantage. But it does terrible damage for retailers because they take it as Gospel truth and it sets them up for massive disappointment if it doesn’t eventuate.
My humble advice to a newbie foreigner coming into the ASX, use the forward statements carefully. Corroborate the info as much as possible. It’s a double edged sword.
FLC Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
