re: Ann: Quarterly Report for quarter ended 3... Kalmsg, spot...

re: Ann: Quarterly Report for quarter ended 3... Kalmsg, spot on

.............”One decent set of news or clarification of what is going on could impact significantly”.

On the subject of communication, I think KEY management might have underestimated the impact the recent financial crisis has had on potential investors. Gone are the days I believe when investors would be happy to sit back on an investment and basically receive quarterly and annual updates. These days it seems to me investors are demanding to be better informed by companies they invest in, and this is where I think KEY have not adapted with their communication style.

Don’t get me wrong I believe KEY management are doing an excellent job in growing the business. However I believe the message is not getting out to the wider market due to their communication style, which may be one of the reasons they seem to be so undervalued at the moment.

I found it interesting when KEY management made a statement in late 2008 about how they had to change their strategy going forward due to the financial crisis. I remember they also said something along the lines “we have to be prudent when spending money”. Thinking about that now, what KEY have failed to acknowledge IMO, is that as investors we also have to be prudent with our investment choices and need up to date information about the companies we invest in.

I believe faith and trust in a company board can only go so far, especially in today’s world where there is so much uncertainty. IMO companies need to adjust their thinking around what and when to inform the market, to provide a little more certainty for their shareholders if they want them to retain them.

The above is probably a good question that needs to be raised to Ken at the AGM, however I would be interested in any thoughts anyone has on this matter.

Cheers
R