Aer Lingus pulls 2009 results announcement

[locke]

It was quoting a source which probably reliable BUT not official.

Company has to make official announcement to ISEQ as otherwise it will get done for manipulating the market.

Its also why Sales / Purchases of shares may come under scruitiny because of insider trading concerns if there were big sell offs.

Employees etc can't sell off due to "Close Period" but calling a friend who does has been known to happen in companies.

Fair enough

I guess that explains the share price today, but with more fall to come tomorrow.

But can someone explain to me my accounting question of earlier. How can they book restructuring costs that will occur in 2010 and 2011 against 2009 results?

[odie1kanobe]

Fair enough

I guess that explains the share price today, but with more fall to come tomorrow.

But can someone explain to me my accounting question of earlier. How can they book restructuring costs that will occur in 2010 and 2011 against 2009 results?

Its an old rule that you cannot take a profit on something until it has phyically occured or are part way through a contract BUT if you know that you will suffer a huge loss or huge costs then you must immediately state it as this could impact on whether the company can continue in the future.

In an airlines case you may know that next 3 months you have sold all tickets at €1000 but until you actually fly then its not a profit.

However if you know that you sold all at €0.01 then you have to state the total cost and give a profits warning.

Its to stop shareholders getting done by management withholding information while management sell while share price is high.

[hammer]

Oddie - as a matter of interest since RyanAir have acquired their 29.9% share in Aer Lingus what is the most amount of shares traded in a single day.

From what I can gather

29.9% Ryanair
25% Exchequer
25% ? staff

It is not a very liquid share.

[odie1kanobe]

Oddie - as a matter of interest since RyanAir have acquired their 29.9% share in Aer Lingus what is the most amount of shares traded in a single day.

From what I can gather

29.9% Ryanair
25% Exchequer
25% ? staff

It is not a very liquid share.

Doesn't have to be.

All you need is for information to be passed to people who can make money out of the shareprice before rest of market know. If you had 1 Million shares current valued at €1 and someone passed infor that price would collapse the day before it happened and you sold and then bought back for €.75 you will be 250k better off with same shareholding on even better owner of 1.33M shares.

Look at VW / Porsche last year where more money was made out of lending out the shares than selling cars.