Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Accounting Shenanigans
Date: Thu, 24 Jan 2002 20:54:56 -0600
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Hi jans,
Here's the answer to your question straight from DGO customer support:
"When stocks have non-recurring gains/losses, our research departments
normalize earnings by excluding these items."
I've saved this one in my investing folder for quite some time, so glad =
it came in handy! In all, whether it's a revenue or expense, if it is an =
extraordinary or one time event, it gets excluded from the pro-forma =
calculations.
Katherine
----- Original Message -----=20
From: Spencer48@aol.com=20
To: canslim@lists.xmission.com=20
Sent: Thursday, January 24, 2002 8:49 PM
Subject: Re: [CANSLIM] Accounting Shenanigans
Tom or Katherine:
I understand-as you state-that "pro forma" numbers do not include =
one=20
time charges. But do they include one time transactions that generate =
income? =20
For example, DGO uses pro forma numbers in identifying the =
earnings of=20
each company whose stock DGO displays. So, then, if the company (for=20
instance, an Internet Company) sold extra land (for example) at a =
loss, this=20
would not be included in earnings, as I understand the term"pro =
forma"-as=20
used in accounting . But how about if it sold the land at a gain? =
Would it=20
be included in the earnings reported as pro forma earnings, even =
though the=20
gain was not associated with its business, and it was a one time gain?
jans
In a message dated 1/24/2002 7:43:13 PM Eastern Standard Time,=20
stkguru@netside.net writes:
<< When DGO reports, they use the proforma numbers NOT the GAAP =
numbers. In=20
other words, they delete all the one time and extraordinary charges =
just like=20
everybody else... >>
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<DIV>Hi jans,</DIV>
<DIV> </DIV>
<DIV>Here's the answer to your question straight from DGO customer=20
support:</DIV>
<DIV> </DIV>
<DIV>"When stocks have non-recurring gains/losses, our research=20
departments<BR>normalize earnings by excluding these items."<BR></DIV>
<DIV>I've saved this one in my investing folder for quite some time, so =
glad it=20
came in handy! In all, whether it's a revenue or expense, if it is an=20
extraordinary or one time event, it gets excluded from the pro-forma=20
calculations.</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=3DSpencer48@aol.com=20
href=3D"mailto:Spencer48@aol.com">Spencer48@aol.com</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> Thursday, January 24, =
2002 8:49=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Accounting=20
Shenanigans</DIV>
<DIV><BR></DIV>Tom or Katherine:<BR><BR> I=20
understand-as you state-that "pro forma" numbers do not include one =
<BR>time=20
charges. But do they include one time transactions that generate =
<BR>income? <BR><BR> For example, DGO =
uses pro=20
forma numbers in identifying the earnings of <BR>each company whose =
stock DGO=20
displays. So, then, if the company (for <BR>instance, an =
Internet=20
Company) sold extra land (for example) at a loss, this <BR>would not =
be=20
included in earnings, as I understand the term"pro forma"-as <BR>used =
in=20
accounting . But how about if it sold the land at a gain? =
Would it=20
<BR>be included in the earnings reported as pro forma earnings, even =
though=20
the <BR>gain was not associated with its business, and it was a one =
time=20
gain?<BR><BR>jans<BR><BR><BR>In a message dated 1/24/2002 7:43:13 PM =
Eastern=20
Standard Time, <BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A>=20
writes:<BR><BR><< When DGO reports, they use the proforma =
numbers=20
NOT the GAAP numbers. In <BR>other words, they delete all the one time =
and=20
extraordinary charges just like <BR>everybody else... =20
>><BR><BR>-<BR>-To 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>
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Next Article (by Subject): Re: [CANSLIM] DFXI vs. JEC--Faulty handle? "stock oper8or"
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Top of Thread: Re: [CANSLIM] Accounting Shenanigans "Katherine Malm"
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