As promised last week by PR NEWS, here are perspectives from analysts about annual reports included in "The Essentials" report by the Potlatch Corp.'s Minnesota Pulp and Paper Division. We're running the comments verbatim so that there's no gatekeeper influence. Our slate of analysts includes Beth Burnston, VP of ABN AMRO Chicago Corp.; Mark Leslie, VP of Dain Bosworth, Minneapolis; and Greg Salchow, VP of Mesirow Financial, Inc. Chicago. Highlights underscore the perception that you can't gloss over bad news.
Mark: I think there definitely are sections that are more important than others. Probably the principal one that I would read would be the MD&A section. I think that generally has the most content from our point of view.
Beth: I care what it looks like. I would like it to be on 8-1/2x11inch paper, with all the pages uniform so I can always quickly flip through.I enjoy reading the letter from the chairman. It gives the flavor of what that person is thinking. I mean, it's not a major part of my analysis, but I would miss that.
Mark: I would miss it, too. I think there's some information in the letter to shareholders that you don't get in a 10k filing. Additionally, after the letter there generally are three or four pages dedicated to the market opportunities or something along those lines. And there's certainly some value in that information as well.
Greg: If you read something about the 'challenging environment' of the previous year, you know that you have to start digging through the numbers and the discussion to find out what went wrong.
Mark: I'll make financial comparisons. Do I set last year's annual report side-by-side with this year's and compare letters? Not necessarily. But, financial comparisons, certainly.
Source: Potlatch Corp., 800/447-2133