AW: [CANSLIM] PSFT: More accounting shenanigans?

From: Andreas Himmelreich <judgejimmy@web.de>
Subject: AW: [CANSLIM] PSFT: More accounting shenanigans?
Date: Tue, 22 Jan 2002 18:08:33 +0100

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Know and use technical sell rules.

KM fundamentally did not look that bad (at least the public did not think 
about
bankrupt) until just before Christmas.

But way before the technicall sell rules applied.
GAP Down on record Volume, leaving a trading range occoured on 8/24.
Well, then you should go out.

But I know that the average Joe, who only has a 401k and invests only
for retirement without the knowlege and time we have cant make that call 
and I feel really sorry for them.

But then, do not play a game you do not know, go into index or mutal funds 
...

> -----Ursprungliche Nachricht-----
> Von:	Tom Worley [SMTP:stkguru@netside.net]
> Gesendet am:	Tuesday, January 22, 2002 5:52 PM
> An:	canslim@lists.xmission.com
> Betreff:	Re: [CANSLIM] PSFT: More accounting shenanigans?
>
> so, how can small investors detect, much less avoid, these kinds of slick 
tricks?
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
>   ----- Original Message -----
>   From: Katherine Malm
>   To: canslim@lists.xmission.com
>   Sent: Tuesday, January 22, 2002 11:45 AM
>   Subject: [CANSLIM] PSFT: More accounting shenanigans?
>
>
>   Once more into the fire. Think this will become the "year of the 
accounting case study."
>
>   --Katherine
>
>    This from Briefing.com
>
>         Archives In Play? all dates
>         Date (ET) Archive Article
>         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.
>         Jan 22 2002
>         10:53 AM In Play PeopleSoft (PSFT) 34.37 -0.97 (-2.7%): 
 --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.
>         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.'
>
>
>
>  << Datei: ATT00007.htm >>  << Datei: show_headline.gif >> 

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