RE: Why does AS do this?10 Jan 2023 08:43
From conkers3.com
I am aware that many private investors are up early to review, digest and Tweet on the numerous 7am RNS releases. They will import information and look for hidden subtexts in the RNS wording. A 7am RNS would have started life a few days or weeks previously and would be finalised and embargoed to the Exchanges information service, ready for early release the next day. It’s fair to say that well run companies have a clear understanding of their news time table, allowing them to plan their RNS releases with the Nomad accordingly. So, if you spot an RNS that’s released a bit out of the blue or late in the trading day, it is best to ask yourself the following questions:
What they are saying?
Why have they chosen now to say this?
What do they hope to gain by telling you this?
Writing an RNS was one of the few things that struck fear in my heart as CEO! The general imprecision of the wording/grammar, the opportunity for misunderstanding, unintentional spoonerisms and ridicule writs large in the mind.
Firstly, there is the issue of if an RNS is required in the first place. Basically, any information that might have a material effect on the Share Price (good or bad) should be RNS’d (see it’s a verb now). Broadly speaking this could be a Corporate Activity like a fundamental change in holdings or a Trading related event like a massive order won or major contract lost. Simply put it’s a way of getting inside information out, but in a formal manner.
The first port of call to determine if an RNS is required is the company’s Nomad. The Nomad will have already timetabled with the board what and when the statutory RNS’s are needed. These will include Full year and Half year results, Trading updates, AGM notices etc. The Nomad is conversant with the AIM rules and the interpretation of them, so he alone will decide if information is material or not. If you are a small start-up, then information regarding a potential tie up with a big player might be deemed material. I know many PI’s are suspicious of a CEO issuing RNS’s right, left and centre announcing collaborations and MOUs, but it’s a judgement call that is made. If
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