VIC, You're entitled to your view. However, I'm afraid that those of ASIC and ASX are far more relevant here. Let me quote from ASIC's 2006 report 'ASIC examines disclosure in speculative sectors and releases report on small and mid-cap miners:' ====================================================================================== ASIC is concerned that some entities may be making announcements for promotional purposes rather than as a means of informing investors, and that this could potentially result in investors being misled. The Australian Stock Exchange (ASX) Guidance Note 8 ‘Continuous Disclosure: Listing Rule 3.1’ states that the Company Announcements Platform (CAP) ‘should not be used for promotional purposes’ and that ‘[a]nnouncements must be balanced and truthful’.
ASIC’s initial review, which focussed on mining companies, aimed to detect entities that demonstrated a pattern of very frequent disclosure alongside significant share price increases, as this could be indicative of poor disclosure practices.
‘ASIC does not want to discourage companies from making full, frank and frequent disclosures where appropriate. Nevertheless, listed entities should ensure material new information is effectively disclosed to investors’, Ms Jennifer O’Donnell, ASIC Executive Director of Compliance, said. ====================================================================================
CQT Price at posting:
40.0¢ Sentiment: None Disclosure: Held
