In its press release announcing the new value of its shares as of May 31, 2022, Fondaction de la CSN completely ignored the sharp 8.7% fall in the value of its shares during May 2e semester from 1ah December to May 31st.
In that press release, issued on the eve of the national holiday, Fondaction’s management settled for saying that its stock was now priced at $15.02, adding, “This is a slight 2.8% decline to begin with of the financial year on 1ah June 2021.”
Let’s turn back the clocks.
A year ago on May 31, 2021, Fondaction shares were worth $15.45. However, this price was revised to $16.46 on November 30 following a positive return in the first half of the new 2021-22 fiscal year.
Therefore, for reasons of transparency, I felt it was necessary to inform Fondaction shareholders that the new price ($15.02) has decreased significantly (-8, 7%) has fallen.
To show you how important it was to disclose this information about the 8.7% fall in the share price in Fondaction’s press release, you should know that this information is part of the “Highlights” included in the “Annual Report Report for the year ending in May” to be reported February 31, 2022”.
THE OMISSION IS TIMELY
In the June 23 press release, not disclosing this 8.7% decline in the stock price over the past six months is a timely omission this year!
Calling attention to the “slight drop” of 2.8% from a year ago would do shareholders less harm than to tell them that their shares are actually down 8% from where they were over the last six months .7% has fallen.
Since the share price at unemployment insurance funds is determined twice per financial year, at the end of the first half of the year on November 30th and at the end of the second half of the year on May 31st, a semi-annual disclosure of share performance in earnings releases seems to me mandatory.
QUESTION TO THE FOUNDATION
“Why didn’t Fondaction disclose in their June 23 press release that net shareholder yield fell 8.7% in the second half, meaning the stock fell from $16.46 to just $15.02? Isn’t that critical information that should be disclosed to shareholders in the press release? I asked.
Response from Fondaction spokesperson Julie Cailliau: “June is the occasion for a review of the year, so we have presented the evolution of financial and extra-financial performance over the last 12 months. »