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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Anthony@Pacific who started this subject4/13/2001 11:55:34 AM
From: UFGator93  Read Replies (2) of 122087
 
Question on pro-forma profits.

I'm hoping someone can explain to me the difference between pro-forma numbers and non-pro-forma numbers. I have read many times how pro-forma numbers are a way for a company to be somewhat deceptive about their earnings but I'd like to have a better understanding of the details from an accounting perspective.

I have learned a lot from the discussion of RIMM the past day or so and appreciate this information. I know a lot of people on here are short HOMS, as am I. Even if you accept their pro-forma numbers, they are still well over valued. They reported a 4 cent gain for the 4th quarter of last year. Most of the financial sites that I've checked have them losing 1.44 for last year, with a 41 cent loss in the 4th quarter. This seems like a huge difference to me.

If anyone could explain the difference or point me towards a good book/site that I could use to better educate myself on the difference between general accounting and pro-forma, I would appreciate it very much.
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