OTCPK:EUCTF - Post by User
Post by
kidl2on Mar 16, 2017 12:18pm
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Post# 25988461
Don’t Give Guidance
Don’t Give GuidanceFrom one of the best educational microcap sites on the web.
Snip:
“One thing I realized early on in my career was that microcap companies that gave guidance weren’t rewarded for doing so. In fact, it was a lose-lose scenario. All guidance did was set investor expectations and put management’s neck on the guillotine. Small microcap companies are owned mostly by retail investors. Retail investors need to let their minds wander in “potential”. When management sets expectations it kills the retail investors wandering mind. They get bored. It is much better to let investors do the work and set their own expectations. The other issue is there are so few real investors in the microcap space. Management cannot afford to be in a position to lose investors trust by not hitting guidance. How do you not lose investors trust and not set expectations? DON’T ISSUE GUIDANCE.” Read more:
https://microcapclub.com/2015/10/dont-give-guidance/#comments