Following Citigroup's statement in an internal memorandum (it was obtained by the media) that it was profitable in January and February 2009, the U.S. market rallied. And a day later, JPMorgan Chase's CEO also made a similar statement.
It is not normal practice that U.S. listed companies provide updates on profitability on a monthly basis. One wonders if the unusual acts were meant to provide confidence to the nervous investors holding on to their shares.
More importantly, now that two of the big banks had flaunted their interim profitability, who is next? Or more pointedly, for companies that see their share prices under pressure, who can afford NOT to provide the market with updates that they too are profitable, lest investors think otherwise?
Updates:
17 March: Standard Chartered Had 'Strong ' First Two Months
16 March: Barclays Says ‘Strong Start’ to 2009
12 March: Bank Of America Joins Parade, Says Sees Profit This Quarter
It is not normal practice that U.S. listed companies provide updates on profitability on a monthly basis. One wonders if the unusual acts were meant to provide confidence to the nervous investors holding on to their shares.
More importantly, now that two of the big banks had flaunted their interim profitability, who is next? Or more pointedly, for companies that see their share prices under pressure, who can afford NOT to provide the market with updates that they too are profitable, lest investors think otherwise?
Updates:
17 March: Standard Chartered Had 'Strong ' First Two Months
16 March: Barclays Says ‘Strong Start’ to 2009
12 March: Bank Of America Joins Parade, Says Sees Profit This Quarter
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