It would be advantageous for companies to aim more carefully at the analysts’ spread sheets, i.e. furnish straight-forward figures such as the expected growth in sales, organic growth, operating margins, etc. Industry data and the competitive situation also provide a good basis for their calculations, but this information may also be valuable for private investors, and since the companies use this data for budgeting and business planning, it would be a good service for the investors to publish them where possible, assesses Henrik Henriksen.
Quarterly reports and monthly figures are also important information, as a frequent information flow gives analysts the possibility to adjust their estimates closely. Basically, it is all about disclosing as much information as possible in a consistent, coherent and predictable manner. Supplementary information is always preferred over uncertainty and lacking information, states Henrik Henriksen.
Henrik Henriksen assesses that in the future it will become increasingly widespread that different types of investors have access to the same information, and it is therefore important that accounts and other major presentations are transmitted via webcasting or possibly via teleconferences. Read more about how to drum up interest in your business in Focus no. 94. Questions to the author may be put to the e-mail address info@cse.dk until 2 December 2004.
