Re: [CANSLIM] Another Andersen client

From: "Patrick Wahl" <pjwahl@attbi.com>
Subject: Re: [CANSLIM] Another Andersen client
Date: Mon, 28 Jan 2002 19:22:54 -0700

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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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