Reading between the lines
We have been delving through a lot of prospectuses lately to try to understand what’s really going on behind the accounting numbers. In a philosophical moment, we were moved to summarise one of the key messages in haiku form…
Float window beckons
“One-off” management bonus
Pro forma hides all
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
LUCAS
:
My fave question in IPO roadshows is asking the PE guys what they’ve paid for it. Especially after they take a public company private, only to make it public again.
In the Public->Pvt->Public merry go round, I wait with sweaty anticipation for them to say “We cannot disclose”.
Then the penny drops. Someone who will not be open about how much they stand to make from a deal, will also try to be as light on with what they disclose on the prospectus.
No matter how well they speak or how good they present, the need to hide public information speaks louder than anything their tongue can say.
Tim Kelley
:
Ha! The internet world’s version of minimalist poetry… “Yo”.
Wayne A
:
Very moving Tim. Says a lot with a few words.
Yo.
Graeme Cox
:
I lived in Kyoto, Japan for 13 years and love ‘haiku.’ Well done! So … lots of floats on the horizon = be very, very wary!