Red Flag Radar – Droning On

Press release on the good news, a mere 8-K on the bad

(This friendly reminder: My Red Flag Alerts and selected On the Street content are no longer free. But while the paint is still drying on my paywall, my introductory price remains. Here’s more on my decision to go paid, and what to expect from my Red Flag Alerts.)

(Updated second-to-the-last paragrah to include a new 8-K that was issued Monday, September 23.)

There are no rules regarding when a company has to issue actual press releases beyond common sense and a desire to do the right thing.

When the news is good, most public companies typically issue a full-blown release. When it’s bad, some do the bare minimum and little more than filing a Form 8-K with the SEC.

Nothing gets my attention faster – and not in a good way – than that dynamic…

While the news still usually finds a way of seeping into the market, it reflects a conscious decision by management to make sure the fewest investors see it. After all, with just an 8-K, there won’t be any headlines with this part of the story on any of the news services.

That’s the story behind latest company to hit my Red Flag Radar, quite possibly on its way to a full Red Flag Alert.

Taking a closer look...