Byrna Technologies Inc. - BYRN

The hazards of relying on "select preliminary financial results"

A couple of weeks ago on my quarterly update I commented on the rise in BYRN’s shares on the heels of the company releasing “select preliminary financial results” for their most recently completed quarter. Somewhat inexplicably they felt the need to repeat this practice after doing the same thing last quarter, and now we are witnessing what appears to be similar results.

Last quarter the company released their “select preliminary financial results” to much fanfare and shares that burst out higher, only to watch their stock implode after releasing the full results in their 10Q. This quarter appears to be no different.

I commented that the only thing the company was releasing was a sales number, and there are quite a few tricks companies can use to make those numbers look simply spectacular. So until you actually see how they came up with the numbers, it tends to be best to reserve judgment on how wonderful a company may be doing.

As I speculated, after revealing more detailed information, the secret sauce here is not exactly spectacular.