Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] PSFT: More accounting shenanigans?
Date: Tue, 22 Jan 2002 11:46:46 -0600
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This is a multi-part message in MIME format. - ------=_NextPart_000_00B7_01C1A33A.782C89E0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks for the article reference, Marc. Peoplesoft must have cleaned up = its act in the last several years. 6 or 7 years ago, every time I'd talk = with someone who used PSFT software, they'd curse it between every = sentence! Katherine ----- Original Message -----=20 From: Marc Deiter=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, January 22, 2002 11:35 AM Subject: Re: [CANSLIM] PSFT: More accounting shenanigans? If you're interested in reading more, one of the last two issues of Forbes had an article about PeopleSoft and this specific issue with accounting practices and Momentum. I only scanned the article, but it sounds like something to avoid. On the other hand, I work in the consulting field and PeopleSoft's products, especially there CRM (Customer Relationship Management) software seem to be growing rapidly in popularity. Marc --- Tom Worley <stkguru@netside.net> wrote: > so, how can small investors detect, much less avoid, these kinds of > slick tricks? >=20 > Tom Worley > stkguru@netside.net > AIM: TexWorley > ----- Original Message -----=20 > From: Katherine Malm=20 > To: canslim@lists.xmission.com=20 > Sent: Tuesday, January 22, 2002 11:45 AM > Subject: [CANSLIM] PSFT: More accounting shenanigans? >=20 >=20 > Once more into the fire. Think this will become the "year of the > accounting case study." >=20 > --Katherine >=20 > This from Briefing.com >=20 > Archives In Play=AE all dates =20 > Date (ET) Archive Article=20 > Jan 22 2002 > 11:06 AM In Play PeopleSoft (PSFT) 33.45 -1.89 (-5.4%): -- > Update -- This is not the first time that concerns about accounting > at the Momentum unit have been brought to light. On Jan 2, > Briefing.com reported a Lehman defense of the stk following a 12/31 > Bloomberg article indicating that PSFT might repurchase its > Momentum Business Applications unit to avoid paying royalties. > Lehman predicted that PSFT was likely to purchase Momentum for > about $90 mln within the next few qtrs. Firm did not think there > were accounting irregularities and viewed the issue as likely > overblown.=20 > Jan 22 2002 > 10:53 AM In Play PeopleSoft (PSFT) 34.37 -0.97 (-2.7%):=20 > --Update-- According to the San Jose Mercury article, PeopleSoft > hired that subsidiary, Momentum Business Applications, to write new > software, and Momentum, in turn, hired PeopleSoft programmers at a > markup. The arrangement transformed the high cost of creating new > programs into a source of revenue for PeopleSoft.=20 > Jan 22 2002 > 10:49 AM In Play PeopleSoft (PSFT) 34.32 -1.02 (-2.9%): > Accounting concerns again putting pressure on PSFT shares. The San > Jose Mercury News reports that an accounting maneuver by former > PSFT head allowed company to avoid crushing development costs. Six > months before stepping aside, PSFT co-founder David A. Duffield > transferred $250 million to a newly created subsidiary with just > one employee and an office down the road from PeopleSoft > headquarters. Peter Knutson, an associate professor emeritus of > accounting at the University of Pennsylvania's Wharton School, > believes the arrangement misled investors: 'It is within the > boundaries of generally accepted accounting principles, but it is > really an intent to deceive.' >=20 > =20 >=20 >=20 > ATTACHMENT part 2 image/gif name=3Dshow_headline.gif __________________________________________________ Do You Yahoo!? Send FREE video emails in Yahoo! Mail! http://promo.yahoo.com/videomail/ - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_00B7_01C1A33A.782C89E0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 5.50.4611.1300" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Thanks for the article reference, Marc. Peoplesoft must have = cleaned up its=20 act in the last several years. 6 or 7 years ago, every time I'd talk = with=20 someone who used PSFT software, they'd curse it between every = sentence!</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Ddites@yahoo.com href=3D"mailto:dites@yahoo.com">Marc = Deiter</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, January 22, 2002 = 11:35=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] PSFT: = More=20 accounting shenanigans?</DIV> <DIV><BR></DIV>If you're interested in reading more, one of the last = two=20 issues of<BR>Forbes had an article about PeopleSoft and this specific = issue=20 with<BR>accounting practices and Momentum. I only scanned the = article,=20 but<BR>it sounds like something to avoid. On the other hand, I = work in=20 the<BR>consulting field and PeopleSoft's products, especially there=20 CRM<BR>(Customer Relationship Management) software seem to be=20 growing<BR>rapidly in popularity.<BR><BR>Marc<BR><BR>--- Tom Worley = <<A=20 href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A>> = wrote:<BR>>=20 so, how can small investors detect, much less avoid, these kinds = of<BR>>=20 slick tricks?<BR>> <BR>> Tom Worley<BR>> <A=20 href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>> = AIM:=20 TexWorley<BR>> ----- Original Message -----=20 <BR>> From: Katherine Malm <BR>> To: <A=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= =20 <BR>> Sent: Tuesday, January 22, 2002 11:45=20 AM<BR>> Subject: [CANSLIM] PSFT: More accounting=20 shenanigans?<BR>> <BR>> <BR>> Once more into the = fire.=20 Think this will become the "year of the<BR>> accounting case=20 study."<BR>> <BR>> --Katherine<BR>>=20 <BR>> This from Briefing.com<BR>>=20 <BR>> Archives In = Play=AE all=20 dates = <BR>> =20 Date (ET) Archive Article=20 <BR>> Jan 22=20 2002<BR>> 11:06 AM = In Play=20 PeopleSoft (PSFT) 33.45 -1.89 (-5.4%): --<BR>> Update -- This is = not the=20 first time that concerns about accounting<BR>> at the Momentum unit = have=20 been brought to light. On Jan 2,<BR>> Briefing.com reported a = Lehman=20 defense of the stk following a 12/31<BR>> Bloomberg article = indicating that=20 PSFT might repurchase its<BR>> Momentum Business Applications unit = to avoid=20 paying royalties.<BR>> Lehman predicted that PSFT was likely to = purchase=20 Momentum for<BR>> about $90 mln within the next few qtrs. Firm did = not=20 think there<BR>> were accounting irregularities and viewed the = issue as=20 likely<BR>> overblown.=20 <BR>> Jan 22=20 2002<BR>> 10:53 AM = In Play=20 PeopleSoft (PSFT) 34.37 -0.97 (-2.7%): <BR>> --Update-- According = to the=20 San Jose Mercury article, PeopleSoft<BR>> hired that subsidiary, = Momentum=20 Business Applications, to write new<BR>> software, and Momentum, in = turn,=20 hired PeopleSoft programmers at a<BR>> markup. The arrangement = transformed=20 the high cost of creating new<BR>> programs into a source of = revenue for=20 PeopleSoft. <BR>> = Jan 22=20 2002<BR>> 10:49 AM = In Play=20 PeopleSoft (PSFT) 34.32 -1.02 (-2.9%):<BR>> Accounting concerns = again=20 putting pressure on PSFT shares. The San<BR>> Jose Mercury News = reports=20 that an accounting maneuver by former<BR>> PSFT head allowed = company to=20 avoid crushing development costs. Six<BR>> months before stepping = aside,=20 PSFT co-founder David A. Duffield<BR>> transferred $250 million to = a newly=20 created subsidiary with just<BR>> one employee and an office down = the road=20 from PeopleSoft<BR>> headquarters. Peter Knutson, an associate = professor=20 emeritus of<BR>> accounting at the University of Pennsylvania's = Wharton=20 School,<BR>> believes the arrangement misled investors: 'It is = within=20 the<BR>> boundaries of generally accepted accounting principles, = but it=20 is<BR>> really an intent to deceive.'<BR>>=20 <BR>> <BR>> <BR>>=20 <BR><BR>> ATTACHMENT part 2 image/gif=20 = name=3Dshow_headline.gif<BR><BR><BR><BR>_________________________________= _________________<BR>Do=20 You Yahoo!?<BR>Send FREE video emails in Yahoo! Mail!<BR><A=20 = href=3D"http://promo.yahoo.com/videomail/">http://promo.yahoo.com/videoma= il/</A><BR><BR>-<BR>-To=20 subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_00B7_01C1A33A.782C89E0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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