reporting on thursday 2nd feb, page-2

re:...big drop prior to report .. oh oo Just to complete the story.
gave guidance prior to the release
a big drop. the biggest in 5 years ...
mmmmmmmm
insider trading????????

WA News asked to explain share trading
Email Print Normal font Large font By Michael Evans
February 4, 2006

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AdvertisementTHE Australian Stock Exchange has asked West Australian Newspapers to explain a 6 per cent fall in its share price on Thursday just hours before the newspaper publisher warned of concerns about its trading outlook.

WAN shares posted their biggest single-day fall in more than five years on Thursday, ahead of the company's interim results, which were released after the market closed. The ASX queried WAN on Friday after the Herald highlighted the timing and extent of the trading.

"It [the share price move] is significant enough for us to examine trading," ASX spokesman Gervase Greene said.

"We have spoken to the company this morning [Friday] to see what risk there might have been that information might have leaked in advance.

"Given that [the price movement] appears to be a reaction to the outlook rather than the result itself, the question is, could that outlook or the basis for it have been leaked?"

WAN chief executive Ian Law was not available for comment.

The company warned late on Thursday that it expected advertising revenue growth to slow.

The ASX spokesman said that on Friday morning WAN "talked us through the process of the approval" of its results the day before.

"We don't yet know of any information that appears to have got out there in advance of the company announcement," Mr Greene said. "They [WAN] can't point to any information having got out.

"As a matter of course, whenever there is a significant price or volume movement ahead of a material event - whether it's a takeover, downgrade or a result - we examine trading in days previous and on the day, and we are in the process of doing it."

It is the second time in a month that concerns have been raised about market sensitive information leaking before material announcements by a company.

Clothing company Pacific Brands recently admitted its investor relations manager spoke with a Macquarie Equities analyst the day before the company announced a profit downgrade.

Macquarie, Pacific Brands' house broker, downgraded its rating before the warning.

Pacific Brands denied any material information was discussed.

Asked if the ASX would formally inquire into the WAN episode, Mr Greene said: "It's already gone past it; we've spoken to the company. They've examined their procedures. At this stage we certainly know of no reason to think that that's an issue and they have certainly not said there is one."

WAN shares fell 19c to $7.83.