Interesting stock market tactics used by companies

The stock markets are a place where Caveat Emptor(Buyer Beware) applies to its fullest. If you come across any of the below tactics, do 

1. Issue QIP/Decisions just before a major negative event
1. Money Matters-QIP at peak price just before MD was arrested
2. Yes Bank-Issue QIP in Q4'17 before disclosing potential provisioning lapse
3. Axis Bank-MD/CEO reappointment and performance bonus, just before NPA issues
2. Declare results at a very early date after quarterly closing, to attract attention
1. Sanwariya Consumer-Declared Jul17-Sep17 results on Oct 3rd, 2017(Remember Oct 1/2 were holidays) albeit unaudited
2. Kitex-Releasing its audited results for Apr15-Mar16 on Apr 4, 2016!! Surpassed even Infosys. For FY167 however, they released with a month's lag
3. Delay results/ declare results quite late with some bad news/Extend Reporting year
1. Axis Bank-When it declared results for Q2'18 showing NPA slippage
2. Shree Renuka Sugars-Extended financial year to 15months without a clear rationale
3. Commission research report and upload on website
1. CRISIL research(most companies) albeit neutral
4. AGMs
1.  at remote locations to minimize attendance-Inox Wind?
2.  at quarter end/latest possible dates to minimize attendance-Many Cos
5. Glossy annual reports
1.  by firms like TRISYS to simplify business. metrics
2. Focus on extraneous stuff-Temptation Food seductive photos of women.
6. Suddenly start holding conferences presentations, analyst calls etc, but stop it when bad times happen. For example
1. Sanwariya Consumer sudden spurt of presentations, reports
2. Educomp ceasing to update its website after bankruptcy
7. Announce plans with limited execution 
1. DCB Bank retail expansion-subsequently rolled back due to resistance and ESOPs repriced to adjust for this benefits
2. Crompton Greaves-Plans to turnaround/hiveoff units but not done

How Infosys foresaw investor risk from negative media

While going through the 20F of Infosys(form for submitting annual report to USA investors), I noticed the following risk factor below, which is self explanatory. 
Negative media coverage and public scrutiny may adversely affect the prices of our equity shares and ADSs.
Media coverage and public scrutiny of our business practices, policies and actions has increased dramatically over the past several years, particularly through the use of Internet forums and blogs. Any negative media coverage in relation to our business, regardless of  the factual basis for the assertions being made, may adversely impact our reputation. Responding to allegations made in the media may be time consuming and could divert the time and attention of our senior management from our business. Any unfavorable publicity may also adversely impact investor confidence and result in sales of our equity shares and ADSs, which may lead to a decline in the share price of
our equity shares and our ADSs.

What is remarkable is that this risk factor has been around in Infy's 20F even earlier. I went through the 20F's for FY10-12, and this risk factor was present. Given that the controversy over Veritas's releasing research reports online, the surge in critical bloggers and journalists, this prescience is quite admirable and reflects the fact that they are quite cautious. Maybe other companies should take note.
http://www.infosys.com/investors/reports-filings/annual-report/form20f/Documents/Form20F-2012.pdf
http://www.infosys.com/investors/reports-filings/annual-report/form20f/Documents/Form20F-2011.pdf
http://www.infosys.com/investors/reports-filings/annual-report/form20f/Documents/Form20F-2010.pdf

Don't judge a company by gloss of its annual report

Its that time of the year where annual reports have been released for FY 2011-12(even the laggards like the R-ADAG group etc have done so). Hence, many of you must be reading them time and again. For fundamental/value investors, a recommended step is to start off with the publicly available financials(i.e annual report/10K/20-F). The better quality information/presentation of that document, the likelier the investor is to read it. However, merely because the annual report is jazzy/well presented does not mean the company is good. For instance, Satyam Computers won the ICAI award for best financial reporting(so ironic!) during the years the scam was one. I could write an entire book on examples of glossy misleading annual report, but I leave that for a later date, and instead focus on this post. What investors should keep an eye out however, is the involvement of annual report consultants/PR agencies in designing the annual report. Now, the very fact of involvement indicates a management obsessed enough with their share price/external reporting so as to engage an external agency for the same. One may think that as long as the information is well presented, then why bother about WHO is responsible for it? The reason is one can understand that whatever the management says, it is concerned about investor relations/stock price, and at a higher risk of earnings management/taking decisions keeping the stock price in mind. Also, one should not falsely attribute financial acumen to the CFO/in-house staff-they do have acumen to outsource it, but the business model understanding/presentation etc which may otherwise imply a well trained finance/strategy team, may just be due to that consultant, with the operational team not really looking into it.

Naturally, no company flaunts its association with their annual report consultants, but any consultant worth its salt, usually puts its name at the last page. For instance, see how the Shree Renuka Sugars annual report last page contains the company name/logo and in fine print and written upside down, the consultant's name!  Also, one can google for 'Concept and Design' or 'A...product' to identify these, but last page suffices.


A few agency names I've come across while reading annual reports are(with names of company in bracket)

1. Wyatt Solutions(www.wyatt.co.in)-Shree Renuka Sugars
2. Trisys(www.trisyscom.com)-Greenply, Reliance, BPL, Saregama India Ltd and VSNL
3. Numero Uno(http://www.numerouno-india.com/)-Persistent Systems-this incidentally is a company which consistently wins ICAI's awards for best presented financials.