After the recent tumble in shares if NETA, it may be prudent to scrutinize any companies you may be holding that have taken an acquired R&D charge in the last few years in connection with pooling-of-interest acquisitions. SEC Chairman Arthur Levitt had warned for over a year that the SEC would not tolerate excessive writeoffs of 'acquired R&D that has no technological feasibility', which is an aggressive bit of accounting that many software companies such as NETA had been using in order to net a partial 'rebate' on the acquisition expenses. NETA had so many pooling-of-interest acquisitions over the last 3 years that it was only a matter of time before the SEC put their books under the microscope.
The following is a self-compiled list of software companies that may have taken an excessive writeoff and thus can be subject to an SEC inquiry and a concurrent swandive in share price:
Other suspect software companies (all over $10 currently):
1. CIBER - CBR
2. Keane - KEA
3. Sterling Software - SSW
4. Seibel Systems - SEBL
5. BMC Software - BMCS
6. Parametric - PMTC
7. Synapsis - SNPS
8. Veritas Software - VRTS
9. Rational Software - RATL
10. The Learning Co. - TLC
11. Legato Systems - LGTO
12. Checkpoint Software - CHKP
13. Electronic Arts - ERTS
14. Verisign - VRSN
15. Autodesk - ADSK
Non-software
1. Tyco International - TYC
2. Snyder Communications - SNC
3. McKesson HBO - MCK
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