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Technology Stocks : Data Dimensions

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To: TA Trader who wrote (571)4/10/1997 1:35:00 AM
From: Jalali   of 4571
 
Q4 Sales pumped up with rapid increase in AR.

DDIM had 96 sales of 9,577 for first 9 months, with an increase of
1,382 in AR & Notes, or about $ 0.14 for every sales dollar.
DDIM had 96 sales of 5,284 in the last 3 months, with an increase
of 2,573 in AR & Notes, or about $0.49 for every sales dollar.

This indicates DDIM was very a aggressive in booking sales in Q4,
and required very little cash payment to recorded a sale.
There is no indication the nature of their sales changed in Q4.
A rapid increase in AR in the 4th Qtr to pump up sale earnings
is an old accounting trick.
This game can only be played one or two quarters before the
birds (sales) come home to roost.

Jalali is trying to help you to see through the smoke and mirrors.
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