Ignore the PR hype and focus on the risk sections of the official prospectus
When it comes to rights issues, IPOs and acquisitions, distinguishing between PR material and indicators of actual performance is vital
It is inherent in the business of public and investor relations that the sunny side gets pride of place in presentations to the media and investors. To counter that bias there is no substitute for investor focus on the ‘risks’ section of prospectuses issued by companies which are governed by regulations. They give a better understanding of the warts and threats that lie behind the PR veneer.
Most people are not conscious of ...
