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Thursday, October 29, 2009

.: The ANAL Analyst :.

Be warned, this is a ranting post.

You know the gullible “friend” I was talking about? If you don’t read a few post back (I’m not gonna link anything).

After today’s incident, whatever lil guilt I have left completely vaporized after the way she, a member of a professional body mind you, coerced me into disclosing confidential information about the company I worked with; which tantamount to INSIDER TRADING!

And it is not some petty crime like stealing packets of coffee or tea from the pantry (which I don’t ok, I was just quoting an example). She is asking me to reveal information that has not been released to the public.

First and foremost, I am bonded by my employment contract as to not reveal any confidential and sensitive info about the company I work for. And secondly, my professional bodies (which sad to say that she shares the same with me on one of them) strictly prohibit this as well. The punishment for such crime is losing your job, your membership as well as your dignity. That is how serious this crime is!

Now you tell me, do you think I would be so damn stupid to be disclosing any info to a ‘friend’, who happens to be an analyst and is writing a report on my company’s stock?

Even if it’s for her personal, private gain, such actions already tantamount to insider trading. Yet alone for a (very likely) analyst report that she is going to write?

When she first asked me if my company is doing any corporate exercise that is causing the share price to shoot up, I said to her that I could not release such info to her. I did not explain to her for I thought that she ought to know why I could not. And no, I wasn’t at all angry at her at this stage.

Then today, I emailed her to ask her for her opinion on Maxis’s IPO and whether it’s worth subscribing to it.

She did not reply my email, so thinking that she may have been busy, I followed up with a call after lunch.

Her immediate response was “You did not share with me any info about your company also…”

I was actually shocked and taken aback by her statement, hence I immediately replied in a very direct manner “Don’t you know that I am ethically not allowed to release such info? It insider trading you know!”

To which she gave a really stupid, stupid reply of “Give as a friend-friend info la”

OMG! How dare she say “friend-friend info” to me?

Hello?!!?

What on earth did they teach you in ACCA* & CFA*?

That “friend-friend info” is okay?

Do you think I am stupid enough to jeopardize my career & life and release “friend-friend info”?

She may be the STUPID one. But the world has only one place for a person of that title!

Isk!

Talk about being an ANALyst!

* Not intending to offend anyone representing this professional bodies, for I am very sure that most of the members carries themselves professionally in their conducts.


6 comments:

Techna said...

I like the way you "rant" in your post, very insightful:)

Kathlynn said...

thank you for complimentin my 'rants' ;)

Anonymous said...

From what you've written in this blog, I think it would be better if you go back to primary school to be a teacher.. The corporate world is just not suitable for you. Who told you analysts can't ask around for information? Who told you reporters can't dig for information? Analysts are just like accountants. Busy and they don't have time to check emails so often or to blog to scold people. So, i don't see anything wrong with your friend for not replying your email earlier. She may be having meetings or she may even be on half day leave or on half day MC.seems to me that you are the one who was desperate for the Maxis information.She did not reply your email and you called her up. From what you described, seemd that the conversation was quite casual and she seemed to be joking. Haven't you thought of the possibility that she might be covering Maxis stock since she is an analyst? But you were pushing her too, emailed her, called her up also. Seemed like you were more desperate for info than her because you called her first. You seemed to be childish and a very emotional person. I would not blame your friend for cracking jokes with you about the 'friend-friend' thing. It is up to you whether you want to tell her.It is good that you do not want to tell her but i think you were at the wrong for this whole episode too, getting angry for nothing and not being able to get jokes. By the way, there is such a thing called 'mosaic theory'. Check it out if you don't know what it is.

bemusedyin said...

to the very busy person who seem to have no time to reply emails and not desperate for information,

get you own ranting space. o yeah i forgot that you're super duper busy and you have no time for blogs, not even time to reply lengthily here.

eh y u so defensive ah???y anonymous?y y y? (if you ever have the time to reply la)

Anonymous said...

"When she first asked me if my company is doing any corporate exercise that is causing the share price to shoot up...."
Source: http://kathlynn-diary.blogspot.com/2009/10/anal-analyst.html

"A. Material Nonpublic Information. Members and Candidates
who possess material nonpublic information that could affect the
value of an investment must not act OR CAUSE OTHERS TO ACT ON THE INFORMATION (emphasis my own.)"
Source: http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2005.n8.4568

"What Does Mosaic Theory Mean?

A method of analysis used by security analysts to gather information about a corporation. Mosaic theory involves collecting public, non-public and non-material information about a company in order to determine the underlying value of the company's securities and to enable the analyst to make recommendations to clients based on that information."
Source: http://www.peopleandpicks.com/blog/InvestmentMAGE/3114887/What-Does-Mosaic-Theory-Mean

Questions:
1. Is this a request for information on "corporate exercise that is causing the share price to shoot up...." a "material non-public information" as defined in the CFA Institute's "Code of Ethics and Standards of Professional Conduct II. INTEGRITY OF CAPITAL MARKETS A. Material Nonpublic Information."?

2. If this is indeed "material non-public information" does Mosaic Theory apply?

* No Opinions. Just Facts *

Anonymous said...

I think those who are unethical are those who should leave the corporate world instead...

I think the corporate world needs people who are ethically above board at all times... to make sure things are "whiter than white". There is too much imprudence, greed and other unethical bahaviour around now...

I havent yet heard of anyone pointing fingers for the Global Financial Crisis on people who are ethical and prudent so aren't those who should leave the unethical persons instead?

Here lies the disparity... what it IS currently is certainly not what it SHOULD BE.

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