Hoax Analyst Showing Up On Earnings Calls
from the six-sigma-indeed dept
I don't follow the process behind earnings conference calls too closely, but apparently there's an element of trust involved. People dial in, tell a moderator who they are, and a bunch of analysts from the most well-known firms are allowed to ask questions. That system is ripe for gaming, and apparently, some unknown guy has been doing exactly that over the past few months, calling into earnings calls and getting to ask questions by pretending to be someone else. No one seems entirely sure what game the guy is playing -- but it doesn't appear to be an attempt to hoax the overall system or be a practical joker -- as his questions aren't amusing. He just brings up odd questions about operations: supply chain initiatives, lean manufacturing, six sigma, etc. That has some believing that he's really working for some consulting firm, either trying to dig up dirt on other company's operations, or even trying to kick up more interest in supply chain work. Either way, it's fairly amazing to find out how the conference call system works and how easy it is to game. It's surprising that this hasn't been done more frequently, honestly. In response, some firms are now handing out special codes to analysts to let them ask questions in future conference calls, rather than just relying on who people say they are -- though, of course, that brings up a different issue: what's wrong with letting people other than your preferred analysts ask questions?
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Filed Under: analyst calls, hoax
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Nothing's wrong with it, provided those asking the questions properly identify themselves, rather than masquerading as others.
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Re: nothings wrong if...properly ID themselves
These companies are NOT allowing anyone else to ask questions, SO the ONLY way to get a fair chance, which we both agree everyone should have, is to lie. In other words. They are acting immorally. In a perfect world, a policeman would come along and arrest them, BUT there is *no one* to arrest them, therefore - LIE TO THE BASTARDS, and you are doing the right thing.
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Like a politician talking about Net Neutrality
If you ever heard a politician speak about Net Neutrality, you must have had that
"He just discovered this complex issue 30 minutes ago, WTF is he doing there talking about things he barely understands"
feeling.
You know, when someone takes on a complex issue, with a long history of swings and problematic players, and decides to go "well, fuck them all, I figured it all out, here are my 2 cents !".
This is pretty much your "series of tubes" right there.
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Re: Like a politician talking about Net Neutrality
If you think I said something wrong, then don't just call me dumb. At least explain what I got wrong, so I can respond.
I'm not sure what good it does to just call me ignorant without backing it up.
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Re: Re: Like a politician talking about Net Neutra
1) Let's do this backwards.
"
Either way, it's fairly amazing to find out how the conference call system works and how easy it is to game
"
Please state an example of gaming it.
2)that brings up a different issue: what's wrong with letting people other than your preferred analysts ask questions?
There isn't much wrong, and for most companies that hold earing calls, it's reality. Moreover, 80% of the time, you can easily get professional, detailed answers without even having to attend these calls.
Just try it - contact Investor Relations of a decent company
(http://investor.google.com/ ?), say
"Hello, dis iz Mike, I has Blog, w/450k uniques and 1mil PV/ month. Do you see icanhascheezburger.com as a threat to Google's business model, and would you consider the Poison Pill in case of a takeover?"
And you are not exactly dumb, just... strangely off. Like trying to get an orgy going in someones Bar mitzvah.
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Re: Re: Re: Like a politician talking about Net Ne
I'd say that the article gives a VERY good example of gaming it. Can you explain why you think this isn't a good example?
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Back on the Bar Mitzvah thing...
Back on topic I will point out that earnings calls have a finite block of time, and bogus person x is taking time away from legitimate participants, reducing the flow of information necessary to determine the financial health and prospects of said company, thereby harming investors. Since I assume he is reading this blog this morning I'll add a secret hidden note for him: L00ser!!
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Not relevant but...
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Conference Calls
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