RNS’s for newbies all else ignore19 Sep 2020 15:14
Firstly you should keep in mind that RNS’s have to be true
Directors are under legal obligation to announce only true facts.
That is why company announcements made via the Regulatory News Service is a collaborative effort with lawyers involved.
Every statement has to be held up to legal scrutiny.
So how can a directors, who need to inform the market or need to support the sp manipulate the RNS to his advantage,while keeping it truthful and legal
They will affect both the timescale and actions of the company contained in the RNS
How do they do this, the use non specific phrases or words
For example, in the near term, soon, could, would. These are just examples but it is anything non specific
Say an announcement contain “the board of directs are pleased to announce they are in talks with x company and a further update will be released soon.
You will of probably thought, Great we are going to have new contracts or whatever.
I read that as nothing concrete, and soon could be until the next update saying talks are continuing and we will update the market soon ... eg BS
I am not saying sell sell sell, but I am saying look at the small details contained in the RNS to help you, along with your research, make better investment choices.
Now with all that in mind look at the 10th September RNS and look for those non specific terminology.
Remember these RNS’s need to be true and be held accountable under legal scrutiny
I said I love the RNS, today I picked a paragraph to prove my first post and then even referred to two words
Now the examples of specific wording from RNS
First line, As planned, company has received ...
which are requesting exclusivity... note- are not might or may ...ARE
UK Capital markets organisation have been positively completed.. not soon. HAVE Been. Past tense
Company have agreed the key terms ..... fact
Open market transactions as recent trading has proved... not conjecture.. proved
Please read RNS in detail look for non specific wording... there is NONE
Read everything twice I keep saying. I read that RNS 10/12 times.
The devil is in the detail, in every RNS announced by every company