CONTACTING COMPANIES FOR INFORMATION/CLARIFICATION

[whiteheron]

Sometimes it appears not possible to obtain all information to make a fully reasoned assessment of a companys potential from the usual sources (nzx, asx, company announcements, newspapers, company websites, investing magazines, etc, etc )

At times i have been tempted to contact companies direct on certain matters, but have been reluctant to because of such things as perceived insider trading, being told to b----- off etc

Iwill be most interested to hear from others their thoughts and/or experiences on this matter ------ the last thing i would want is to be accused of insider trading although i consider this would be an extremely remote possibility , such treatment it seems being reserved for those really in the know who buy or sell on key information known to them that will move share values markedly
for certain
Your comments will be appreciated

[Halebop]

I don't often do this but I do sometimes contact a company to share an opinion or ask a question. Sometimes I get full and reasoned responses and sometimes I don't get an answer at all. Irrespective, it all helps me form an opinion of their relative merits. I certainly don't expect to receive "insider" information.

[Lawso]

Like Halebop, I've often phoned a company for information/clarification. I ask for the Coy Sec and identify myself as a shareholder and have never had a negative experience. At other times I've emailed the chairman or CEO with a comment or observation about the coy's affairs and invariably get a courteous reply.
Most recently I asked for the voting figures at a poll of shareholders and was readily given the information. Of course, one can't expect to be told stuff that is not in the public domain. And if I were ever given the brushoff or treated rudely that would certainly colour my opinion on the company's merits.

[fundir]

I often corespond with a several of the small cap startups that I own shares in, however I don't bother much with the larger companies as there is often a lot more information in the media about them. Like Lawso I always identify myself as a shareholder when communicating.

The types or corespondence can vary from passing on a potential sales lead, pointing out some reasearch relivant to the firm, actions of a competitor or just asking for clarification on some information. The responses can vary for a polite thank you to a hugh rambiling letter.

On point of information clarification I find that asking specific questions can often lead to an answer that provides a lot more information than is disclosed in any announcement. For example I questioned Electrometals on their recent mutual agent agreement to find out who initiated the agreement.

On at least one ocasion the response I have recieved has had a hint of a future stategy that the company was going to pursue. However don't expect it to make you rich overnight, as it took over 9 months for that strategy to come to light.

One last note, the coffee and biscuits at the end of a company meeting can be the most informative part of the meeting for you as a shareholder, just make sure you go there well informed and have an idea of the sorts of questions you want to ask.

[TheBossMan]

I write to companies' CFOs mainly to verify that the interim reports would be on time / not. Also, I pass on feedback about availability of investor information.

Always get a prompt reply by end of next business day.

[bermuda]

I always send mail to the CEO by name marked "Private and strictly confidential".That way I know it's going to be read and actioned by the CEO.Works every time.

[bongo66]

I would recommend you contact the companies you are invested in from time to time. It helps give you a clearer picture of your investment-it is not just the figures on the balance sheet that are important.

In fact I would go as far to say you are doing something wrong in your investing in the business if you DONT make contact with execs , shop floor staff etc.

Get involved, Bongo

[David Renwick]

I've contacted Coy Sec'ys on occasions, asking specific questions and always had reasonable and careful answers. Email to Investor Relations is the usual format.