Posted by: pen2bit | March 16, 2009

Not Providing Information!

By Economist

By Economist

A personal Thought on an article by Economist!

One of the key information for investors for making their decision and to evaluate what they wanted to do by analyzing their options getting help from the numbers of Annual Earnings Estimates, these estimates are normally exposed every financial period. But global economy downturn made some big companies not reveal the information and the numbers hoping they can avoid panic investors decision making.

I think this is not going to help them to give the investors an optimistic bright view for their forecast on the company’s future! I believe when the decision makers are not allowed to access to the normally accessible information the result is worse than having them access to disappointing information.

An excerpt from Article Citing the chaos of the global downturn, a growing number of companies, including Unilever, an Anglo-Dutch consumer-goods firm, Costco, a big American retailer, and Union Pacific, one of America’s big railroads, have decided not to give annual earnings estimates for 2009.If ever there was a moment for firms to keep their crystal balls under wraps, this may appear to be it. But many companies are still issuing annual forecasts in spite of the uncertainty roiling their markets. On February 24th, for instance, Home Depot, another American retailer, estimated that its revenues and earnings per share from continuing operations would decline by about 9% and 7% respectively in its 2009 financial year. Earlier this month, Reckitt Benckiser, another European consumer-goods group that competes with Unilever, said it was confident it could increase its revenues by 4% this year.When the downturn situation is reached everywhere and almost entire world is struggling, we (if were in shoes of a DSS agent) would better respect decision maker’s understanding and provide all considered information even if the information does not contain good news. This way we have the decision makers on a place that gives them a chance to compare our options in a fair and well informed picture.


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