Oct 18, 2012

Where’s Google’s Press Release?

KCSA CEO and managing partner Jeff Corbin offers some thoughtful perspective on the problems caused by the premature filing of Google’s 8K (which subsequently triggered release of the search giant’s quarterly results ahead of schedule) on the KCSA blog today.

In a post titled “Where’s the Press Release?”  Corbin asks whatever happened to investor relations best practices.

“While new technologies and best practices in IR communications are evolving (i.e. social media and mobile), there is something to say about traditional methods of communications such as the dissemination of press releases through newswire services,” he noted, going on to say “When a company issues a press release, investors are accustomed to going to their preferred source for financial information and looking for letters such as “PRN” signifying the internationally recognized newswire service, PR Newswire.  Seeing these initials, one immediately knows that what follows is a press release issued and condoned by the company itself.  And, these services have editorial desks responsible for working with the companies to ensure the accuracy of the news about to be disseminated and that dissemination and filing with the SEC  happens correctly.”

Read Corbin’s full blog post here:  Where’s the Press Release?  And for more solid thinking from the folks at KCSA, follow them on Twitter: @KCSAstrategic

PR Newswire offers a fully integrated, secure and redundant suite of investor relations and complicance services, and are serious about disclosure best practices.


3 Comments on Blog Post Title

Darrell Heaps (@darrellheaps) 17:48 EDT on Oct 18, 2012

Here’s Why Google’s Stock Tanked [ANALYSIS] and it had nothing to do with the early release:

“The stock is not tanking because the earnings leaked early. If the earnings were good, the market would ignore that.”


Trevor Loe 22:05 EDT on Oct 18, 2012

We agree Darrell…although timing didn’t help as no one was prepared and the original message was set to go out after market close. The content of the announcement was the driving force behind the stocks dive. Our point of view is that integration of the compliance & disclosure processes can provide an additional safeguard. Having checks and balances in place is good for everyone.

Bradley H. Smith 09:06 EDT on Oct 19, 2012

I disagree with that pundit about “tanked.” The pre-release ABSOLUTELY affected the insane drop. Had the release been executed per Google’s strategy, after the day’s close, management would 1.) use the conference call to explain their results 2.) had the entire evening to speak with major investors prior today’s opening.

Had all gone as planned, would their stock be down – of course. Unfortunately, the pre-release removed the actual “investor relations” element to their earnings announcement and added HUGE drama to their stock – including a halt. Human sacrifice! Dogs and cats, living together! Mass hysteria! All the Street had were “numbers” and not context or vision.

Ignore the pre-release if the numbers were good? If the numbers were good, then folks who don’t have a GOOG SEC feed alert (99.5% of retail investors) would be screaming insider trading and Wall Street advantage over Main Street. Human sacrifice! Dogs and cats, living together! Mass hysteria!

Yesterday was a bad day for us all – and you can bet some soul or two is now outta work. .

Here is my blog > http://irblog.prnewswire.com/2012/10/19/preventing-yesterday-from-happening-tomorrow/

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