1.	Everyone knows that, after a company retains you, for a hearty fee, to analyze its annual report in depth, it's got you on the hook; that is, you're its captive...henceforth it can do no wrong. True or false. Answer: Try telling that to Zygo. It read about my exploits (specifically, concerning my exclusive Theme Registry) in Fortune, retained Cato Communications, Inc., to analyze its report in depth. That initially was its 2001 book. A year later, we included it, gratis of course, in our overall evaluation—as each year thereafter. Each of its books did equally poorly—until its 2004 report. Though it still failed to achieve "world-class" status (100 out of a possible 135 points), at least its score was a bit more respectable: 86 points. And its Cato Positive Index (CPI) at least got into the positive category: 11.1%. After three years of negative results.
	2.	British companies tend to—well, innovate, try new things, experiment, break new ground. True or false? Answer: Yeah, right: Our impression is U.K.-based companies tend to have deep pockets; that is, they spend loads on their annuals, both printing and graphic design. Result, though, is—well, wanting. A good example is the 2004 Lloyds TSB Group book. Despite its investment, and perhaps because of its terribly flawed sense of humor, its score is a woeful 48 points, with a negative (-11.1%) Cato Positive Index. Graphics—well, its judgment is reflected in my notes concerning the book and its approach: "Two males and a metronome."
	3.	You pulled the plug on your annual Annual Report Conference because of lack of interest—face it. True or false? Answer: Not true. Though advance reservations lagged, in this, our 17th year of sponsoring this annual conference, what tipped the scales, first, was a cold email from the hotel in Savannah that informed us it had assigned our reception space to someone else. Without apology and/or explanation. But then my partner and I independently—before Hurricane Katrina—felt terribly uncomfortable about the entire event, including motoring to Savannah. Which, of course, is now under hurricane threat! Nice touch: IBM, sponsor of last fall's conference-inaugurating reception, and on tap to sponsor this fall's, verified (without prompting) it stood ready to resume sponsorship in the future. Truly a class act.
	4.	"When in doubt," you write, "quote from the income statement." True or false? And what, exactly, does that mean? Answer: Simple: I read the shareholder letter in an annual report, compare it to the income statement. Obviously (to my way of thinking), there should be no discrepancies. Too often, though, the CEO and those who surround him don't want to deal with the realities of the year past, opt, instead, to tailor their message in hopes no one will notice the year was—well, wanting at best. I see that as terribly, terribly bad form. You should be in this for the long haul, guys.
	5.	Your "wakeup call" to Kellogg's, a neighbor (based fewer than 10 miles from your office), is a play on words. It has subtle reference to the cereal company's advertising. True or false? Answer: Kellogg's "the best to you each morning" (or some-such) is one of the world's best-known slogans. I didn't find it, though, in its 2004 book—certainly not given the prominence due it. Generally, the report was found wanting, though ending up with an above-average 33.3% CPI and a close-but-no-cigar 99 points, one away from "world-class" status. One huge flaw: a six-page shareholder letter, twice the worldwide average. Worse, I found it devoid of the human touch.