In the Grade B movies a deadbeat tells the landlady he will pay the back rent in the morning.He then goes to his room , backs his bags and sneaks out a window.
In the stock market companies that are going to give bad news generally wait for a Friday after the market closes . Their hope is that a news release at that time and day will be largely ignored and the news not widely reported or circulated.
Castle Brands ( ROX) is a liquor distributor looking to break out after years of losses and underperformance. It is on my watch list because it is an investment of Dr. Phillip Frost a billionaire investor.The stock went public at $9 and is recently below $ . 80 – a loss of more than 90 % . Any improvement that could be seen will spark investors interest in a turnaround – if the potential can be delivered. It is a stock worth watching because the promise is that increasing sales will herald a multi-year comeback for the share valuation.
For all the shareholders and watchers the new quarterly report would – it was hoped – be the sign that new management was working .
On Friday the Company issued a quarterly update through an SEC filing. The after hours filing was not accompanied by a company news release. That is not the way to treat long suffering shareholders or to give confidence to watchers looking for a ” good news ” story to mark an entry point.
It will be interesting to see what the market reaction will be – right now I am glad not to be holding shares.