3 ms·
They'll be able to show the calculations that led to the assumptions. As long as those are valid, regulators won't act. But many public companies have discover
by dx034 9y ago
They'll be able to show the calculations that led to the assumptions. As long as those are valid, regulators won't act.
But many public companies have discovered that conservative forecasts with positive surprises are better for the share price than optimistic forecasts with profit/production warnings.
- kchoudhu 9y agoAs it turns out, they knew full well that fully automated production wouldn't be possible in the upcoming quarter when the statement was made (i.e. they were manufacturing cars by hand, without an assembly line). They lied to investors to keep the stock price pumped. Not cool.