I’ve been consistent with regards to NPs statements on CCs for the past 12 months..he has his strengths but the conference calls and PRs get him into trouble… if we were on the NASDAQ he would be shredded by analysts during conference calls for many reasons.. 1st , a press release announcing something such as a potential arrangement with Mexico will come up or in a CC, then there is no follow up until he is asked many months later “ what’s going on with Mexico ?” Essentially the answer was nothing..Or he goes off script and muses about something that is either a very slim possibility or an exaggeration.
I have been in many quarterly earnings reports to analysts in my career at multiple companies. We always “ rehearsed” these among the exec team who was going to be on the call so we ensured we covered all the bases and tied previous statements or press releases into the meeting so the analysts could see the continuity in our messaging and strategy. Are we hitting our goals. Are we being consistent from quarter to quarter meetings so the analysts were comfortable with what we were doing.
There is no such behavior in our CCs . Once NP goes off script he has a tendency to say whatever comes to mind without thinking of the consequences. When there is no tie in or it turns out a quarter later the event he was speaking to didn’t occur , the stock gets downgraded because the analysts don’t have confidence in what is being said will be executed.he needs coaching big time but I don’t think he would receive it well. Sometimes a person’s ego just doesn’t allow someone to come in and help them get better in their job
So is it material? If analysts downgrade because of the inconsistencies , the answer would be yes because it negatively impacts the stock price