Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: Red Flag FAQ Formerly: [CANSLIM] WCOM restatement
Date: Wed, 26 Jun 2002 09:14:47 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_00A5_01C21CF1.EB040340 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Duke, I've uploaded 3 articles on looking for accounting red flags: http://WallStreet-LLC.com/canslim/AccountingRedFlags.doc http://WallStreet-LLC.com/canslim/FORENSICACCOUNTINGRedFlags.doc http://WallStreet-LLC.com/canslim/DisectingFinancials.doc Another good reference is "Financial Shenanigans: How to Detect = Accounting Gimmicks & Fraud in Financial Reports" by Howard Schilit = (recently released 2nd edition) While it's difficult to ferret out egregious fraud, there are always = tracks left in the financials when shenanigans are afoot. Best thing I = ever learned in accounting courses was "the real story is in the = footnotes." That's why I've always made it a habit of reading the key = parts of the SEC filings during due diligence and immediately = eliminating any stock from further consideration where there were any = iffy accounting issues. Guess there's more Buffett vs WON in me than I = realized! Katherine ----- Original Message -----=20 From: Duke Miller=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, June 26, 2002 8:43 AM Subject: RE: Red Flag FAQ Formerly: [CANSLIM] WCOM restatement Well said. Unfortunately, and this isn't the first time this thought has been expressed, this and the future ones hiding in the woodwork, could very well spell the doom of the American stock market as we know it today. A radio columnist (Democracy Now) just yesterday was ruminating over the impact on the markets if (when) foreign = stockholders decide to take their money and run...away from "America's painfully corrupt financial markets." I have a suggestion (NOT my usual tongue in cheek, friends) for a = group project...a public service to all of us CAN SLIMers. What if we = create a FAQ on how to avoid these slime balls? =20 Should we start with Andersen Consulting's client(former) list. I = tried their website; no luck. =20 Then how about a list of tips on what to look for in SEC filings to ferret out red flags.=20 Duke -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Kent Norman Sent: Wednesday, June 26, 2002 8:13 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] WCOM restatement The answer is: The same childish, short-sighted, immediate satisfaction that blinds them to the possibility that there is a tomorrow... They run the business like they live their life. All today and no tomorrow. Kent Norman --- "Cefaloni, John L Jr. [AMSTA-AR-WEA]" <john.cefaloni@us.army.mil> wrote: > Well said, Tom. What is it that makes people do things for = temporary=20 > gain when they know they'll probably get slammed for it in the = future? >=20 > I guess it's just greed, stupidity and arrogance. >=20 > -----Original Message----- > From: Tom Worley [mailto:stkguru@bellsouth.net] > Sent: Wednesday, June 26, 2002 12:53 AM > To: CANSLIM > Subject: [CANSLIM] WCOM restatement >=20 >=20 > once again, Andersen strikes again, this time by signing off on=20 > Worldcom hiding over $3 billion in expenses as capital expenditures, = > and thus inflating cash flow. Restatement expected to take away last = > five quarters of > profits and turn them into losses. >=20 > Who gave this sanction to a deviation from GAAP (Generally Accepted=20 > Accounting Principles)?? Andersen, of course. It's clear that Enron=20 > was only the tip of the iceberg, as if Waste Management, Sunbeam, = and=20 > a host of other > companies were not sufficient warning of major problems in corporate > policy > and infrastructure. Sad to see a great name like Andersen = prostituted > to > selling its certification services for any price, but also clear = that > it > must disappear from corporate America. And until every major company > audited > by Andersen undergoes a special review by the SEC on accounting > practices, I > doubt anyone will believe that we have finally seen it all. >=20 > Tom Worley > stkguru@bellsouth.net > AIM: TexWorley >=20 >=20 >=20 > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or -"unsubscribe=20 > canslim". Do not use quotes in your email. >=20 > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or -"unsubscribe=20 > canslim". Do not use quotes in your email. =3D=3D=3D=3D=3D Opportunities always look bigger going than coming. __________________________________________________ Do You Yahoo!? Yahoo! - Official partner of 2002 FIFA World Cup http://fifaworldcup.yahoo.com - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_00A5_01C21CF1.EB040340 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 http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Duke,</DIV> <DIV> </DIV> <DIV>I've uploaded 3 articles on looking for accounting red flags:</DIV> <DIV> </DIV> <DIV><A=20 href=3D"http://WallStreet-LLC.com/canslim/AccountingRedFlags.doc">http://= WallStreet-LLC.com/canslim/AccountingRedFlags.doc</A></DIV> <DIV><A=20 href=3D"http://WallStreet-LLC.com/canslim/FORENSICACCOUNTINGRedFlags.doc"= >http://WallStreet-LLC.com/canslim/FORENSICACCOUNTINGRedFlags.doc</A></DI= V> <DIV><A=20 href=3D"http://WallStreet-LLC.com/canslim/DisectingFinancials.doc">http:/= /WallStreet-LLC.com/canslim/DisectingFinancials.doc</A></DIV> <DIV> </DIV> <DIV>Another good reference is "Financial Shenanigans: How to Detect = Accounting=20 Gimmicks & Fraud in Financial Reports" by Howard Schilit (recently = released=20 2nd edition)</DIV> <DIV> </DIV> <DIV>While it's difficult to ferret out egregious fraud, there are = always tracks=20 left in the financials when shenanigans are afoot. Best thing I ever = learned in=20 accounting courses was "the real story is in the footnotes." That's why = I've=20 always made it a habit of reading the key parts of the SEC = filings during=20 due diligence and immediately eliminating any stock from further = consideration=20 where there were any iffy accounting issues. Guess there's more Buffett = vs WON=20 in me than I realized!</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=3Ddukemill@tampabay.rr.com = href=3D"mailto:dukemill@tampabay.rr.com">Duke=20 Miller</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> Wednesday, June 26, 2002 = 8:43=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: Red Flag FAQ = Formerly:=20 [CANSLIM] WCOM restatement</DIV> <DIV><BR></DIV>Well said. Unfortunately, and this isn't the = first time=20 this thought<BR>has been expressed, this and the future ones hiding in = the=20 woodwork,<BR>could very well spell the doom of the American stock = market as we=20 know<BR>it today. A radio columnist (Democracy Now) just = yesterday=20 was<BR>ruminating over the impact on the markets if (when) foreign=20 stockholders<BR>decide to take their money and run...away from = "America's=20 painfully<BR>corrupt financial markets."<BR><BR>I have a suggestion = (NOT my=20 usual tongue in cheek, friends) for a group<BR>project...a public = service to=20 all of us CAN SLIMers. What if we create<BR>a FAQ on how to = avoid these=20 slime balls? <BR><BR>Should we start with Andersen Consulting's=20 client(former) list. I tried<BR>their website; no luck. =20 <BR><BR>Then how about a list of tips on what to look for in SEC = filings=20 to<BR>ferret out red flags. <BR><BR>Duke<BR><BR>-----Original=20 Message-----<BR>From: <A=20 = href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis= sion.com</A><BR>[mailto:owner-canslim@lists.xmission.com]=20 On Behalf Of Kent Norman<BR>Sent: Wednesday, June 26, 2002 8:13 = AM<BR>To: <A=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= <BR>Subject:=20 RE: [CANSLIM] WCOM restatement<BR><BR><BR>The answer is:<BR><BR>The = same=20 childish, short-sighted, immediate satisfaction that blinds<BR>them to = the=20 possibility that there is a tomorrow... They run the<BR>business like = they=20 live their life. All today and no tomorrow.<BR><BR>Kent = Norman<BR><BR>---=20 "Cefaloni, John L Jr. [AMSTA-AR-WEA]" <<A=20 = href=3D"mailto:john.cefaloni@us.army.mil">john.cefaloni@us.army.mil</A>&g= t;<BR>wrote:<BR>>=20 Well said, Tom. What is it that makes people do things for = temporary=20 <BR>> gain when they know they'll probably get slammed for it in = the=20 future?<BR>> <BR>> I guess it's just greed, stupidity and=20 arrogance.<BR>> <BR>> -----Original Message-----<BR>> From: = Tom=20 Worley [mailto:stkguru@bellsouth.net]<BR>> Sent: Wednesday, June = 26, 2002=20 12:53 AM<BR>> To: CANSLIM<BR>> Subject: [CANSLIM] WCOM=20 restatement<BR>> <BR>> <BR>> once again, Andersen strikes = again, this=20 time by signing off on <BR>> Worldcom hiding over $3 billion in = expenses as=20 capital expenditures, <BR>> and thus inflating cash flow. = Restatement=20 expected to take away last <BR>> five quarters of<BR>> profits = and turn=20 them into losses.<BR>> <BR>> Who gave this sanction to a = deviation from=20 GAAP (Generally Accepted <BR>> Accounting Principles)?? Andersen, = of=20 course. It's clear that Enron <BR>> was only the tip of the = iceberg, as if=20 Waste Management, Sunbeam, and <BR>> a host of other<BR>> = companies were=20 not sufficient warning of major problems in corporate<BR>> = policy<BR>>=20 and infrastructure. Sad to see a great name like Andersen = prostituted<BR>>=20 to<BR>> selling its certification services for any price, but also = clear=20 that<BR>> it<BR>> must disappear from corporate America. And = until every=20 major company<BR>> audited<BR>> by Andersen undergoes a special = review=20 by the SEC on accounting<BR>> practices, I<BR>> doubt anyone = will=20 believe that we have finally seen it all.<BR>> <BR>> Tom = Worley<BR>>=20 <A = href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>> = AIM:=20 TexWorley<BR>> <BR>> <BR>> <BR>> -<BR>> -To=20 subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>= ; -In=20 the email body, write "subscribe canslim" or -"unsubscribe <BR>>=20 canslim". Do not use quotes in your email.<BR>> <BR>> = - -<BR>>=20 -To subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>= ; -In=20 the email body, write "subscribe canslim" or -"unsubscribe <BR>>=20 canslim". Do not use quotes in your=20 email.<BR><BR><BR>=3D=3D=3D=3D=3D<BR>Opportunities always look bigger = going than=20 = coming.<BR><BR>__________________________________________________<BR>Do = You=20 Yahoo!?<BR>Yahoo! - Official partner of 2002 FIFA World Cup<BR><A=20 = href=3D"http://fifaworldcup.yahoo.com">http://fifaworldcup.yahoo.com</A><= BR><BR>-<BR>-To=20 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.<BR><BR><BR>-<BR>-To = subscribe/unsubscribe, email=20 "<A = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= =20 the email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". =20 Do not use quotes in your email.</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_00A5_01C21CF1.EB040340-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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