Volume 23, No. 3: Time To Gear Up For The 2013 10-Ks
In a matter of days, investors will find themselves buried under an avalanche of 10-K filings. (Investors on the East Coast are already familiar with the feeling – from snow, not filings.) The filing season is upon us: the filing clock runs out on March 3 for large accelerated filers having calendar year ends. Information overload ensues.
And the information is just too good for investors to let it go to waste. Investors shouldn’t pass up the chance to see how a firm fared in the last twelve months, and how its managers carried out the duties entrusted to them by long-term shareholders – but sometimes they do. When information overload strikes, some investors will throw up their hands and take refuge in the false hopes offered by the efficient market theory. They’ll tell themselves that “if there was bad news in the 10-K, someone else would have seen it by now and it would be built into the stock price.” Those people are probably the types who whistle past graveyards, too.
Don’t be intimidated by a stack of 10-Ks – you can do this! And you can do it better when you map out what you need to accomplish before you start. In this report, we’ll go over the analyses you should make with some information that’s available only once a year, and review some of the annual report rituals worth repeating each year to help refresh your knowledge of a firm’s inner workings.