From Charlie Aitken at Southern Cross this morning
"The biggest complaint I get from management of corporate Australia is that they simply cant run their companies to the timeframes investors are now beholden to. Its a complete mismatch and is leading to friction between investors and companies and increased short-term volatility. Many leaders of corporate Australia say to me that they make capital spending decisions on 3 to 5 year horizons, yet the equity market marks them on 3 month performance. They tell me now they are tending to ignore the views of institutional investors and analysts because their timeframes are unaligned. As one CEO said to me yesterday if they dont agree with our strategy they are free to sell the stock; I cant run the company for day traders."
Well said -------------- Pinto
FML Price at posting:
5.6¢ Sentiment: ST Buy Disclosure: Held
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