Go to Jeff Salisbury LWGate Home Page.From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] Another Andersen client
Date: Mon, 28 Jan 2002 16:31:54 -1000
Next Article (by Date): RE: [CANSLIM] Another Andersen client "Mike Gibbons"
Previous Article (by Date): Re: [CANSLIM] Another Andersen client "Patrick Wahl"
Next in Thread: RE: [CANSLIM] Another Andersen client "Mike Gibbons"
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format. - ------=_NextPart_000_000E_01C1A819.4BD3B920 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Tom, Andersen's chairman could hardly say anything else, or all their existing clients would head for the door, just as some of them have reportedly done already. I think their future is in doubt and they certainly risk losing key partners and staff because the malodour of working for Andersen's is not one they will all want to bear. Their future is probably to become a second or third tier firm, or be merged into what will become the big 4. The implication of your post is that bankruptcies are somehow linked to the auditor but I find that a bit of a stretch, despite the circumstantial evidence you cite. Management and the Board, together with market conditions, must surely bear the responsibility for a company going belly-up. The Auditors role is not to tell management where their policies may lead the company to failure, in fact questioning management is something they are loath to do. Andersens would appear to have failed in their fiduciary responsibility to shareholders in the Enron case (although I think we should consider them innocent until proven guilty), but I have seen no evidence that in doing so they contributed to Enron's collapse. Last Friday, All Things Considered (NPR) had a story about how some analysts had been shorting Enron stock, or refused to recommend it, because their numbers were non-sensical. You can hear it here http://www.npr.org/ramfiles/atc/20020125.atc.10.ram As for answering your question about data sources, I have no idea. Because the Accounting firms are partnerships, they have no responsibility to publish such information and clearly have an interest in holding it closely, so I doubt it is available. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Monday, January 28, 2002 3:34 PM To: canslim@lists.xmission.com Subject: [CANSLIM] Another Andersen client 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 - ------=_NextPart_000_000E_01C1A819.4BD3B920 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META content=3D"text/html; charset=3Diso-8859-1" = http-equiv=3DContent-Type> <META content=3D"MSHTML 5.00.2614.3500" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20 class=3D720195601-29012002>Tom,</SPAN></FONT></DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20 class=3D720195601-29012002></SPAN></FONT> </DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20 class=3D720195601-29012002>Andersen's chairman could hardly say anything = else, or=20 all their existing clients would head for the door, just as some of them = have=20 reportedly done already. I think their future is in doubt and they = certainly=20 risk losing key partners and staff because the malodour of working for=20 Andersen's is not one they will all want to bear. Their future is = probably to=20 become a second or third tier firm, or be merged into what will = become the=20 big 4.</SPAN></FONT></DIV> <DIV> </DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN = class=3D720195601-29012002>The=20 implication of your post is that bankruptcies are somehow linked to the = auditor=20 but I find that a bit of a stretch, despite the circumstantial evidence = you=20 cite. Management and the Board, together with market conditions, must = surely=20 bear the responsibility for a company going belly-up. The Auditors role = is not=20 to tell management where their policies may lead the company to failure, = in fact=20 questioning management is something they are loath to do. Andersens = would appear=20 to have failed in their fiduciary responsibility to shareholders in the = Enron=20 case (although I think we should consider them innocent until proven = guilty),=20 but I have seen no evidence that in doing so they contributed to Enron's = collapse.</SPAN></FONT></DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20 class=3D720195601-29012002></SPAN></FONT> </DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN = class=3D720195601-29012002>Last=20 Friday, All Things Considered (NPR) had a story about how some analysts = had been=20 shorting Enron stock, or refused to recommend it, because their numbers = were=20 non-sensical. You can hear it here <A=20 href=3D"http://www.npr.org/ramfiles/atc/20020125.atc.10.ram">http://www.n= pr.org/ramfiles/atc/20020125.atc.10.ram</A></SPAN></FONT></DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20 class=3D720195601-29012002></SPAN></FONT> </DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN = class=3D720195601-29012002>As for=20 answering your question about data sources, I have no idea. Because the=20 Accounting firms are partnerships, they have no responsibility to = publish such=20 information and clearly have an interest in holding it closely, so I = doubt it is=20 available.</SPAN></FONT></DIV> <DIV><FONT color=3D#0000ff face=3DArial size=3D2><SPAN=20 class=3D720195601-29012002></SPAN></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>Mike Gibbons<BR>Proactive Technologies, = LLC</FONT></DIV> <DIV><FONT face=3DArial size=3D2><A=20 href=3D"http://www.proactech.com/">http://www.proactech.com</A></FONT></D= IV> <BLOCKQUOTE style=3D"MARGIN-RIGHT: 0px"> <DIV align=3Dleft class=3DOutlookMessageHeader dir=3Dltr><FONT = face=3DTahoma=20 size=3D2>-----Original Message-----<BR><B>From:</B>=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Tom=20 Worley<BR><B>Sent:</B> Monday, January 28, 2002 3:34 PM<BR><B>To:</B>=20 canslim@lists.xmission.com<BR><B>Subject:</B> [CANSLIM] Another = Andersen=20 client<BR><BR></DIV></FONT> <DIV><FONT face=3DArial>Global Crossing Ltd (GX) just filed for = bankruptcy=20 as a preplanned reorganization in which two of its Asian partners will = buy the=20 assets for $750 million. Closed today at 28 cents, down 23 cents for = the day=20 on NYSE (gotta be embarrassing to NYSE, ENE was the record bankruptcy, = GX is=20 #4, and that's just this month). I am sure it's a coincidence, but for = year=20 2000 Andersen billed them $2.3 million for audit services, and nearly = $12=20 million for consulting and other non-audit services. I am sure that = couldn't=20 have biased Andersen in any way, of course.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>Common and preferred shareholders lose = everything,=20 including Management reported still owning 14%. Then again, there was = some=20 insider selling last May when the stock was still in the mid-teens, as = well as=20 some buying in October when it traded $1-3.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>Anybody know a place on the net where I can = find a list=20 of Andersen's clients, showing billing by Audit and non-Audit = services? I=20 would like to do some shorting. There seems to be a pattern emerging = here. The=20 Chairman of Andersen says the firm will survive, but I am not sure = that is=20 good news for investors.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>Tom Worley<BR><A=20 href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20 TexWorley</FONT></DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_000E_01C1A819.4BD3B920-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Date): RE: [CANSLIM] Another Andersen client "Mike Gibbons"
Previous Article (by Date): Re: [CANSLIM] Another Andersen client "Patrick Wahl"
Next in Thread: RE: [CANSLIM] Another Andersen client "Mike Gibbons"
Articles sorted by: [Date]
[Author]
[Subject]