Go to Jeff Salisbury LWGate Home Page.From: "zillagirl" <zillagirl@email.msn.com>
Subject: Re: [CANSLIM] "M"
Date: Mon, 8 Jul 2002 11:22:45 -0700
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Katherine-in response to your view on not believing the problems are en =
masse. I heard Barney Frank talking about this earlier today. He said =
he believes that it is a problem that is rooted throughout business in =
general. He said he believes its being caused by the degree of =
competition existing right now. The example he gave was 'If your a body =
builder and one of the other body builders started taking steroids-you =
would probably have to consider taking steroids in order to keep =
competitive.' Thanks for all your input-I value your advice.
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Monday, July 08, 2002 11:06 AM
Subject: Re: [CANSLIM] "M"
I hear what you're saying, jans, and good point on the cash flow =
issue. GAAP's a tool like all others, a set of accepted practices for =
reporting, but when companies are determined to fudge, they'll find a =
way to do it.. At the same time, I can't believe that companies are en =
masse trying to pull the wool over everybody's eyes and I have to =
believe that in the majority of cases that people are speaking the =
truth, though maybe only as they "know it." The good news is that I =
don't have to "believe" what MRK is saying, just let the chart speak. =
Gosh...RS=3D29, declining RS Line, declining 50 and 200dMA's, price well =
below both MA's.
P-U. A poster child for stinky stocks.
Katherine
----- Original Message -----=20
From: Spencer48@aol.com=20
To: canslim@lists.xmission.com=20
Sent: Monday, July 08, 2002 12:18 PM
Subject: Re: [CANSLIM] "M"
Katherine:
Not to mention (and in particular), Cash-Flow. Although with =
WorldCom=20
you can't even trust that anymore.
Come to think of it, though, why would "growth" make a =
difference. It=20
would, I agree, if the earnings were legitimate. But, with GAAP =
being a=20
loophole rather than an honest accounting, why can't earnings be =
mongrified=20
for more than 1 year, along with revenue? =20
Also, why believe Merck spokesmen when they explain how "butter =
wouldn't=20
melt in their mouth"? It seems that accounting practices nowadays =
are used=20
in order, not to reveal, but to hide company shenanigans.
jans
In a message dated 7/8/2002 9:42:51 AM Eastern Daylight Time,=20
kmalm@earthlink.net writes:
<< he Wall Street Journal, citing an SEC filing, reports that =
company=20
recorded $12.4 bln in revenue from its Medco pharmacy-benefits unit =
over the=20
past 3 years that the subsidiary never collected. According to the =
article,=20
Medco included as part of its revenue the co-payments collected by =
pharmacies=20
from patients, even though it doesn't receive those funds. Between =
1999 and=20
2001, co-payments comprised nearly 10% of Merck's overall reported =
revenue.=20
Merck first disclosed the accounting treatment in an April SEC =
filing for=20
Medco's IPO, but didn't disclose the amount of revenue involved =
until a=20
filing on Friday. Merck says the accounting treatment has no effect =
on its=20
net income because it subtracts the same amount as expense.=20
=20
=20
Accounting rules would allow this kind of treatment (even though =
it's a bit=20
silly to show the monies at all unless the co-payments run through =
their=20
hands at some point). Just goes to show why growth in earnings *AND* =
revenues=20
are equally important when doing a fundamental review.
>>
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<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>Katherine-in response to your view on =
not believing=20
the problems are en masse. I heard Barney Frank talking about =
this earlier=20
today. He said he believes that it is a problem that is rooted =
throughout=20
business in general. He said he believes its being caused by the degree =
of=20
competition existing right now. The example he gave was 'If your a =
body=20
builder and one of the other body builders started taking steroids-you =
would=20
probably have to consider taking steroids in order to keep competitive.' =
Thanks=20
for all your input-I value your advice.</FONT></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> Monday, July 08, 2002 =
11:06=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
"M"</DIV>
<DIV><BR></DIV>
<DIV>I hear what you're saying, jans, and good point on the cash flow=20
issue. GAAP's a tool like all others, a set of accepted practices =
for=20
reporting, but when companies are determined to fudge, they'll find a =
way to=20
do it.. At the same time, I can't believe that companies are en masse =
trying=20
to pull the wool over everybody's eyes and I have to believe that in =
the=20
majority of cases that people are speaking the truth, though maybe =
only as=20
they "know it." The good news is that I don't have to "believe" =
what MRK=20
is saying, just let the chart speak. Gosh...RS=3D29, declining RS =
Line,=20
declining 50 and 200dMA's, price well below both MA's.</DIV>
<DIV> </DIV>
<DIV>P-U. A poster child for stinky stocks.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3DSpencer48@aol.com=20
href=3D"mailto:Spencer48@aol.com">Spencer48@aol.com</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> Monday, July 08, 2002 =
12:18=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
"M"</DIV>
<DIV><BR></DIV>Katherine:<BR><BR> Not to =
mention=20
(and in particular), Cash-Flow. Although with WorldCom <BR>you =
can't=20
even trust that anymore.<BR><BR> Come to =
think of=20
it, though, why would "growth" make a difference. It =
<BR>would, I=20
agree, if the earnings were legitimate. But, with GAAP being a =
<BR>loophole rather than an honest accounting, why can't earnings be =
mongrified <BR>for more than 1 year, along with revenue? =20
<BR><BR> Also, why believe Merck spokesmen =
when they=20
explain how "butter wouldn't <BR>melt in their mouth"? It =
seems that=20
accounting practices nowadays are used <BR>in order, not to reveal, =
but to=20
hide company shenanigans.<BR><BR>jans<BR><BR>In a message dated =
7/8/2002=20
9:42:51 AM Eastern Daylight Time, <BR><A=20
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>=20
writes:<BR><BR><< he Wall Street Journal, citing an SEC =
filing,=20
reports that company <BR>recorded $12.4 bln in revenue from its =
Medco=20
pharmacy-benefits unit over the <BR>past 3 years that the subsidiary =
never=20
collected. According to the article, <BR>Medco included as part of =
its=20
revenue the co-payments collected by pharmacies <BR>from patients, =
even=20
though it doesn't receive those funds. Between 1999 and <BR>2001,=20
co-payments comprised nearly 10% of Merck's overall reported =
revenue.=20
<BR>Merck first disclosed the accounting treatment in an April SEC =
filing=20
for <BR>Medco's IPO, but didn't disclose the amount of revenue =
involved=20
until a <BR>filing on Friday. Merck says the accounting treatment =
has no=20
effect on its <BR>net income because it subtracts the same amount as =
expense. <BR> <BR> <BR> Accounting rules would allow =
this=20
kind of treatment (even though it's a bit <BR>silly to show the =
monies at=20
all unless the co-payments run through their <BR>hands at some =
point). Just=20
goes to show why growth in earnings *AND* revenues <BR>are equally =
important=20
when doing a fundamental review.<BR> >><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.</BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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