A Message to Management: Communication is Common Sense
BY: Vuki777 - June 25th, 2008 - 6:52 PM
+503-8 When we purchase any company's stock, we purchase a little piece of a company, a little piece of the chairs, the carpets, the computers, the desks, the drilling equipment, the laboratory equipment, the offices, the factories, and most importantly: the talents, skills, and capabilities of the people running the companies. Our investment shows true dedication and belief in the management's vision. We dedicate our hard-earned dollars to support occasionally far-fetched ideas that have a high possibility of becoming nothing.
The least any management team can do is communicate. Government-required filings aren't enough. I want; I need to know what the management is thinking. I have the right to know what my cash is doing. I want; I need to know when plans work out and especially when they don't. I want; I need to know when my dollars will have the opportunity to multiply and when they might die.
So to all the management out there, please keep us little stock-holders informed. Please issue regular press-releases that are based on fact. Please hold regular conference calls and be open to receiving our sometimes petty inquiries. In the end, we understand that management steers the ship, but it is us that are the wind which gives any company the force to move and the ability to exist.
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Re: A Message to Management: Communication is Common Sense
That's an interesting point. Why do you think that a community like this can better digest information, wade through dis-information, and gather information when it is lacking?
Also, does trying to directly call management ever work?
Re: A Message to Management: Communication is Common Sense
I favor your thoughts very much Iverson, along with the blog above.. I remember those nasty pinks from vancouver, many guys lost their shirts in that fiasco, you really have to know what your investing in and a larger board is always more efficient in battling any type of crime in my humble opinion, kramer
Re: A Message to Management: Communication is Common Sense
The Pinksheets and BBs are flawed but in the end I think the added risk is priced in. My argument is that greater transparency builds trust and in the end benefits the share price.
Re: A Message to Management: Communication is Common Sense
Your right. But I'm sure the greed is just as heavy in Canada as it is in the US. I live in Vancouver and just look at Vancouver so many years ago. A whole bunch of bogus companies trying to fleece investors with their pinksheet and BB companies. Much has changed now but I think Snowbird may be correct, regulation might have something to do with it. We only see behaviour on the pinks and BB's right?
I think having a board of directors changes things to. And not just a two man board where they are in cahoots but an actual 6-8 man board that helps police and work in the best interest of shareholers.
Re: A Message to Management: Communication is Common Sense
It's quite a strange phenomenon. The dichotomy definitely seems to be present and I'm sure it's a combination of factors that makes it so (potentially including regulation but definitely including culture).
What's worse is when some penny-stock management feels a sense of entitlement. Like it's assumed that they deserve the investors' money and that they can do anything with it without informing us. This is especially bad considering that penny-stocks are usually in the penny ranges for a reason: that their product or service is still unproven.
Re: A Message to Management: Communication is Common Sense
I tend to think american greed has a lot to do with it. weather it be good or bad.. We want to get rich quick, and us companies know it. Its big bussiness here. its called "the news and politics". flog us with what we might want to hear. then screw us for their own gains.
Re: A Message to Management: Communication is Common Sense
I don't know if it has to do with regulations but I think Vuki is right about the cultural difference. It's interesting how culture can influence finance.
Re: A Message to Management: Communication is Common Sense
It absolutely is. I am a Canadian who invests solely in US stock(pinks and BB's) and there is a major difference between the two countries and how they translate news. Canada is more often than not the one's who come out with news good or bad and don't really try and put a spin on it. Just tell it like it is I guess. Now, on the US small cap it is a little different. They like to look at it with a more positive nature and maybe forget to mention some of the negatives. Now this could also be because of regulations but it makes for a great debate.
Re: A Message to Management: Communication is Common Sense
I think that that's a great question. I believe that it has to do with the inherent cultural differences present in the US and Canada. From what I've read and witnessed, there is a greater expectation of decisions to be made for the common good in Canada. The responsibility to maintain and better the society lies on everyone's shoulders. The US depicts a more individualistic culture that might be seen in the management here. Basically, for the same reasons that Canada has socialized medicine, their management is more forthcoming with information. Clearly this is just my hypothesis but it seems pretty logical.
Re: A Message to Management: Communication is Common Sense
Being an American who invests in Canada and the US I find canadian management much more outgoing and forthcoming with information than I do with the small companies over here.
Is there a reason for that?