Sunday, August 23, 2009

Analysts’ approval for Punch progress

It's the last line of defence for a company 'finance director' to come out with a 'sanguine' statement to analysts (read this as being 'frank', honest or 'admitting things are tough'). It implies a new vision has been reached, a new understanding of business circumstances, a new flexible approach to the business model is being tried. 'We know it's been tough, we know we must change, we know how to do this and we will soon be back to where we were before all the inconveniences started'.

Remember statements made by Woolworths' top brass in response to questions about the business model being weak because all profits were made over Christmas? - Something to the effect of: 'Oh we've always lost money all year long and turned it around in three weeks at Christmas, everyone knows that, now we're looking at making the Woolworths' appeal work through the whole year with seasonal offers'... etc etc etc. That went on for a few years until their black hole swallowed them up.

Think about it really. The professional title might be 'company finance mis-director'.

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