Re: [CANSLIM] KMart vs Enron

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] KMart vs Enron
Date: Tue, 22 Jan 2002 17:44:32 -0500

Next Article (by Date): AW: [CANSLIM] Panic attack ... Andreas Himmelreich
Previous Article (by Date): Re: [CANSLIM] WDFC - Market needs a little lubrication ... "Patrick Wahl"
Next in Thread: Re: [CANSLIM] KMart vs Enron "Patrick Wahl"
Articles sorted by: [Date] [Author] [Subject]

Patrick, I would like to believe you are correct that financial shenanigans
are very much the exception. However, they do seem to be showing up more,
and in the example given by Katherine with PSFT, often much harder to
detect. I cannot help but wonder how many more examples are out there just
waiting to be revealed / discovered.

I am hoping that the fall from grace of Andersen makes other accounting
firms more nervous and careful, and do more than just make sure they dot
their i's and cross their t's. But even so, I question whether it will last
more than a few quarters.

Maybe we need more bloodthirsty investigative business reporting, drooling
to rip a company apart. I remember the good ole days, when the slightest
questionable business practice usually showed up in the media eventually.
Scandal and embarrassment is a great deterrent.

I no longer believe that I can rely on analysts, nor that the more analysts
the better. Frankly, I trust little aside from my own analysis, and
communications with corporate officials. I recall one analyst some years ago
who discovered that a company was doing underwritings, then booking the
money raised as revenues from its European subsidiary (College Bound??),
thereby inflating its overall sales figures. His reward for this discovery?
He got fired from his firm, even though less than a year later he was proven
correct. I have heard nothing from him since then. I hope he is doing well,
but suspect his industry treated him very poorly despite his honesty.

Tom Worley
stkguru@netside.net
AIM: TexWorley
- ----- Original Message -----
From: "Patrick Wahl" <pjwahl@attbi.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, January 22, 2002 4:07 PM
Subject: Re: [CANSLIM] KMart vs Enron

> Yeah but -you can certainly also make an argument for large and mid-cap
> companies.  First, the financial shenanigans are very much the exception,
not the
> rule. Also, larger companies are going to have a broader range of
companies as
> customers, a broader product line, less dependent on any one company as
> customer or a single product that might go out of favor, less likely to
have a
> competitor enter the market and kill their margins.   I would also like to
add that a
> larger company is under closer scrutiny, more analysts following it,
harder to hide
> things, but I'm afraid I can't.  I think we've seen for at least two years
that analysts
> just rubber stamp whatever a company passes along to them, they do very
little
> investigative work or original thinking, it appears.
>
> On 22 Jan 2002 at 11:27, Tom Worley wrote:
>
> > With KM down 54% just for today, and 94% since its last high on 8/8/01,
who can you trust anymore in the executive level of corporations. Today
makes me glad I stick to my small caps, where a rumored buyout finally
official gave me a 10% gain on one stock, and a new contract gave me 13% on
> another. Big caps are just too big and complicated for the likes of me. At
least I make money for the day. > > Tom Worley > stkguru@netside.net > AIM:
TexWorley >
>
>
>
> -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim".  Do not use quotes in your email.
>
>

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.