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Financial Skeptic

Accentuating the caveat emptor with critical commentary concerning investor relations and financial communications. I look at how information is (mis)managed and manipulated thereby creating possible investors losses.

Bristol-Myers Guidance

Posted on 09/02/2006 00:00 AM | Link | Post Comment
Bristol-Myers (NYSE:BMY)has reduced guidance because of the impact of Apotex competition. With a tip of the hat to financial reality the timing of the reduced guidance is suspicious. Given legal positioning BMY may now claim huge losses in any further legal action. Why did they not choose to identify these potential damages in the past and reflect those scenarios in previous guidance. Most investors may be able to analyze an operating company. But how do you analyze a negative legal perspective that develops over time. Only management could identify the risk and quantify it for investors. Many have been flying blind.
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