Without wanting to do the old 'I told you so', I recall...

Without wanting to do the old 'I told you so', I recall commenting on this site, after the release on the Dec'06 results, that ABS had clearly gone backwards. At the same time, both here and in the media, the headline read *ABS increases EPS by 40%* or something crazy like that.

But I don't have to tell you what you probably already know. The standard of stock analysis is generally very poor.

Finally, something about auditors. It is not the auditors' job to make an investment recommendation. Their job is to ensure that financial reports comply with accounting standards and that the company is solvent. Therefore, unless there has been a flagrant non-compliance such as false revenue recognition etc, which the auditors either missed or covered up, there isn't much you can pin on the auditors.

It is the directors' responsibility to convey the true economic picture of the company. It is very easy for directors to hide the real picture. They don't have to lie either, but they can be selective in their disclosure.

But it's always been 'caveat emptor' in this game, has it not ?


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