08-14-2013, 06:05 AM
"Saying, " We are happy with the progess in our exclusive negotiations with Exxon and are confident of a successful outcome" would have been enough to give some reassurance that things are ok"
But they really can't/shouldn't say that because that's what's gotten them into trouble in the past. Their disclosures elsewhere (Forward looking, MD&A, etc) state that discussions are going on, and then say they can't guarantee (or whatever) that these talks will result in any agreements. It's supposed to be an almost worst case scenario so that the "buyer" is investing with all risks laid out. Leading investors on is what attorneys want to avoid in case something doesn't pan out. That's how shorts use fear to affect pps. They assume the worst and know too many retail investors are overly optimistic. And it's overly optimistic longs who bring shareholder suits usually IMO. So corporate attorneys craft the disclosures and try and get management to be very guarded in what they say to the positive side. Hession showed us today that he understands all of this; he's a seasoned veteran. That's why we see the glowing comments to this today by Pavel and Evan; it's a relief for them to have someone saying only what's necessary.
But they really can't/shouldn't say that because that's what's gotten them into trouble in the past. Their disclosures elsewhere (Forward looking, MD&A, etc) state that discussions are going on, and then say they can't guarantee (or whatever) that these talks will result in any agreements. It's supposed to be an almost worst case scenario so that the "buyer" is investing with all risks laid out. Leading investors on is what attorneys want to avoid in case something doesn't pan out. That's how shorts use fear to affect pps. They assume the worst and know too many retail investors are overly optimistic. And it's overly optimistic longs who bring shareholder suits usually IMO. So corporate attorneys craft the disclosures and try and get management to be very guarded in what they say to the positive side. Hession showed us today that he understands all of this; he's a seasoned veteran. That's why we see the glowing comments to this today by Pavel and Evan; it's a relief for them to have someone saying only what's necessary.