Re: [CANSLIM] PSFT: More accounting shenanigans?

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] PSFT: More accounting shenanigans?
Date: Thu, 24 Jan 2002 16:19:26 -0500
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Hi Andreas,

Your last sentence is, without question, the most important. But then, when
I look at how my 401K did last year (where I can only use funds), and
compare that to how I did on my own, both with my IRA and then also with 5
months with my VR Fund, I still feel sorry for someone who must invest that
way. In six months, not one index has caught me, most are around 18% behind,
and only the Russell 2000 even got close.

I also feel sorry from the standpoint of those that owned funds with big
holdings in Enron and KMart. Those fund managers should have known better,
they are supposed to be professionals, yet they got caught holding large
quantities of both stock and bonds.

Looking at a story today on Enron, I saw some numbers on their tax payments.
Four of the past five years, they paid no taxes at all, by using a tax dodge
involving hundreds of offshore corps they set up in tax haven countries.
This resulted in over $400 million in tax rebates. How could neither the
auditors, nor all the analysts, see this money coming back in and not
question why such a big company was paying no taxes? Even if it was
completely legal, it was so complicated, and went on so long, that it is
hard for me to understand why no one was questioning it.

Tom Worley
stkguru@netside.net
AIM: TexWorley
- ----- Original Message -----
From: "Andreas Himmelreich" <judgejimmy@web.de>
To: <canslim@lists.xmission.com>
Sent: Tuesday, January 22, 2002 12:08 PM
Subject: AW: [CANSLIM] PSFT: More accounting shenanigans?


> 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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