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 09:29:57 -0500
Previous Article (by Date): Re: Red Flag FAQ Formerly: [CANSLIM] WCOM restatement "Katherine Malm"
Top of Thread: Re: Red Flag FAQ Formerly: [CANSLIM] WCOM restatement "Winston Little"
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Oops...that second article should be:
http://WallStreet-LLC.com/canslim/FORENSICINVESTINGRedFlags.doc
Katherine
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, June 26, 2002 9:14 AM
Subject: Re: Red Flag FAQ Formerly: [CANSLIM] WCOM restatement
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,=20
> and thus inflating cash flow. Restatement expected to take away =
last=20
> 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.
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<META http-equiv=3DContent-Type content=3D"text/html; =
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<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; =
mso-fareast-font-family: 'MS Mincho'; mso-ansi-language: EN-US; =
mso-fareast-language: EN-US; mso-bidi-language: AR-SA">Oops...that=20
second article should be:</SPAN></DIV>
<DIV><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; =
mso-fareast-font-family: 'MS Mincho'; mso-ansi-language: EN-US; =
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AR-SA"></SPAN> </DIV>
<DIV><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; =
mso-fareast-font-family: 'MS Mincho'; mso-ansi-language: EN-US; =
mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><A=20
href=3D"http://WallStreet-LLC.com/canslim/FORENSICINVESTINGRedFlags.doc">=
http://WallStreet-LLC.com/canslim/FORENSICINVESTINGRedFlags.doc</A></SPAN=
></DIV>
<DIV><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; =
mso-fareast-font-family: 'MS Mincho'; mso-ansi-language: EN-US; =
mso-fareast-language: EN-US; mso-bidi-language: =
AR-SA"></SPAN> </DIV>
<DIV><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; =
mso-fareast-font-family: 'MS Mincho'; mso-ansi-language: EN-US; =
mso-fareast-language: EN-US; mso-bidi-language: =
AR-SA">Katherine</SPAN></DIV>
<DIV><SPAN=20
style=3D"FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; =
mso-fareast-font-family: 'MS Mincho'; mso-ansi-language: EN-US; =
mso-fareast-language: EN-US; mso-bidi-language: =
AR-SA"></SPAN> </DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</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 =
9:14=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>
<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=20
Accounting Gimmicks & Fraud in Financial Reports" by Howard =
Schilit=20
(recently released 2nd edition)</DIV>
<DIV> </DIV>
<DIV>While it's difficult to ferret out egregious fraud, there are =
always=20
tracks left in the financials when shenanigans are afoot. Best thing I =
ever=20
learned in accounting courses was "the real story is in the =
footnotes." That's=20
why I've always made it a habit of reading the key parts of the SEC=20
filings during due diligence and immediately eliminating any =
stock from=20
further consideration where there were any iffy accounting issues. =
Guess=20
there's more Buffett vs WON 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=20
href=3D"mailto:dukemill@tampabay.rr.com">Duke 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>=
=20
</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=20
we 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=20
these 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,=20
this time by signing off on <BR>> Worldcom hiding over $3 billion =
in=20
expenses as capital expenditures, <BR>> and thus inflating cash =
flow.=20
Restatement expected to take away last <BR>> five quarters =
of<BR>>=20
profits and turn them into losses.<BR>> <BR>> Who gave this =
sanction=20
to a deviation from GAAP (Generally Accepted <BR>> Accounting=20
Principles)?? Andersen, of course. It's clear that Enron <BR>> =
was only=20
the tip of the iceberg, as if Waste Management, Sunbeam, and =
<BR>> a host=20
of other<BR>> companies were not sufficient warning of major =
problems in=20
corporate<BR>> policy<BR>> and infrastructure. Sad to see a =
great name=20
like Andersen prostituted<BR>> to<BR>> selling its =
certification=20
services for any price, but also clear that<BR>> it<BR>> must=20
disappear from corporate America. And until every major =
company<BR>>=20
audited<BR>> by Andersen undergoes a special review by the SEC on =
accounting<BR>> practices, I<BR>> doubt anyone will believe =
that we=20
have finally seen it all.<BR>> <BR>> Tom Worley<BR>> <A=20
=
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,=20
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></BLOCKQUOTE></BODY></HTML>
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Previous Article (by Date): Re: Red Flag FAQ Formerly: [CANSLIM] WCOM restatement "Katherine Malm"
Top of Thread: Re: Red Flag FAQ Formerly: [CANSLIM] WCOM restatement "Winston Little"
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