RE: [CANSLIM] Another Andersen client

From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] Another Andersen client
Date: Mon, 28 Jan 2002 16:37:38 -1000

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Yes, commissions were deregulated in the 70's and competition and the
internet have driven them ever lower making the investment banks dependant
on thier corporate instead of retail clients. An example of the unintended
consequences of deregulation. Every silver lining has a cloud.

Aloha,

Mike Gibbons

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Patrick Wahl
Sent: Monday, January 28, 2002 4:23 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Another Andersen client

Since I just saw an interesting discussion about analysts on CNBC, and for
the most
part their failing to be on top of the Enron debacle, I looked up the
ratings on GX at
Yahoo.  There is 1 strong buy, 1 buy, 7 holds, and 2 sells.  The fact that
there are
any sells is surprising, that indicates how much trouble they are in.

(the discussion on CNBC, incidentally, was with a former energy analyst.  He
is out
of Wall Street now, so he spoke fairly candidly.   Said in the 1970's
brokers got
much of their money from retail customers, so their sense of obligation was
for
providing good research to their clients.  Lately, much of the business for
larger
brokerage houses comes from underwriting, so they tend to have loyalty
towards
companies they are supposedly providing objective opinions about.  In a
nutshell,
the advice isn't necessarily going to be trustworthy.)

On 28 Jan 2002 at 20:34, Tom Worley wrote:

> Global Crossing Ltd (GX) just filed for bankruptcy as a preplanned
reorganization in which two of its Asian partners will buy the assets for
$750 million. Closed today at 28 cents, down 23 cents for the day on NYSE
(gotta be embarrassing to NYSE, ENE was the record bankruptcy, GX is #4, and
that's just this month). I am sure it's a coincidence, but for year 2000
Andersen billed them $2.3 million for audit services, and nearly $12 million
for consulting and other non-audit services. I am sure that couldn't have
biased Andersen in any way, of course.
>
> Common and preferred shareholders lose everything, including Management
reported still owning 14%. Then again, there was some insider selling last
May when the stock was still in the mid-teens, as well as some buying in
October when it traded $1-3.
>
> Anybody know a place on the net where I can find a list of Andersen's
clients, showing billing by Audit and non-Audit services? I would like to do
some shorting. There seems to be a pattern emerging here. The Chairman of
Andersen says the firm will survive, but I am not sure that is good news
for investors.
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
>

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