it isnt open to interpretation. read the history of posts from the time. thats the exact takeout many had.
the stock price reflected that. indeed the initial State One analysis reflected that.
there's always a few possible interpretations. language isnt a precise thing
so occasional mistakes of ambiguity/disappointment the market will forgive
but repeated mistakes are seen - rightly or wrongly - as a sign of poor or in the worst instances deceptive expectation management. and you cant tell the market when it will flip from forgiving to condemning.
you dont want to be seen as a bait and switch shop - period.
sometimes - if you;re unlucky - you can have a double whammy of both misleading ambiguity plus things you state with integrity that nonethless dont come to pass piling up against you - which looks like what has happened here
but the market doesnt parse that. it lumps it all into one view on the stock,
the market is often a hysterical goldfish reflecting what I said yesterday that 99% of views are superficial - because the markets price action can be nasty and so fast decisions on indifferent information are often required even rewarded
but companies dont get to tell the market how it has to act. so a company has to work to ensure it doesnt self harm by feeding the goldfish mentality by smart anticipation
its not about lowering to the markets level either.
in my own view - and its just that - a more serene quiet, fact based positivity and purpose is the tone that should inform how a company positions itself to market.
building blocks are just building blocks - and should be conveyed in that context.
'we;ve signed today a distribution deal with X. After considerable due diligence with X's senior management we have been given reasonable expectation to anticipate x-y income over 3 years that should being to be generated, after an initial ~6 month training and initial sales commencement period'.
' we caution that these forecasts rely almost entirely on X and will continue to monitor and manage the relationship and report to shareholders on how that is tracking vs plan."
doesnt have quite the same zing as 'monster' deal does it? but if you;re fair dinkum about letting income speak for itself...
BUD has been reasonably in line with that much of the time - but then blighted its copybook by overt statements that omit the caveats and implied a more heady income speed.
Dont get me wrong - this stuff gets a bit overstated at the moment because the sp has been falling for some time.
once it starts rising again - people's more dire thoughts about BUD's reputation will back off. Same as happened to twiggy forrest reputation once they went from losing money on his promises to making money
But at the heart of it there's an important improvement the company should bring to bear - a learning from past mistakes as it goes on to bigger and better things in future
BUD Price at posting:
11.8¢ Sentiment: Buy Disclosure: Held
