On August 14th, Thomas Hilton, SVP & CFO reported the following:
"Accordingly, before one-time charges related to the implementation of SFAS 142, we are projecting fiscal 2003 EPS of at least $1.75 and first quarter EPS of $0.30 to $0.31."
On September 16th, just after publishing the above guidance, DKWD management issues the following:
St. Louis, Missouri - September 16, 2002 - D&K Healthcare Resources, Inc. (NASDAQ: DKWD) announced today that as a result of lower than expected sales in its fiscal 2003 first quarter, the Company's seasonally slowest period, D&K is reducing its EPS guidance before one-time charges related to the implementation of SFAS 142 to approximately $0.13 - $0.17, from $0.30 to $0.31"
Anyone know of any major management stock selling during this time? This is either terrible forecasting or an intentional effort to mislead shareholders.
o Insiders dump in June/July aware of issues o Insiders mislead shareholders in August to allow passage of time and create sudden atmosphere of surprise next month. o Insiders decide enough time has passed from date of their stock sales to lower guidance.
So how would this make their management any different from the folks at Enron or WorldCom?