The forecast values and key performance indicators that are used should be a suitable indicator for documenting the progress of the corporate strategy in question.
The more precise the guidance, the greater the probability that it will have to be corrected in the course of a profit warning.
Stocks with a lot of momentum are especially exposed. Care should be exercised in a growth phase to prevent exuberant enthusiasm.
When it looks likely that the forecasts will be missed, it is advisable to provide information as swiftly and transparently as possible.
