Mr. Tucker (no intention to slight through over formality, I just don't know your preferred salutation),
Some comments:
Tax rate is easily manipulated quarter to quarter, but curiously, is least manipulatable in the 4th quarter, as the annual statement will be audited. So, in this particular case, I would argue that the lower than expected tax rate is the product of careful management planning and appropriately conservative accounting practices in previous quarters. I would certainly be alarmed if this were the first fiscal quarter, and then saw the subsequent quarters come in at a significantly higher tax rate to make up for it.
As to DSOs, LU's promise was 5 to 10 days improvement. Parmalee, Cena and Sagawa all quoted 82-87 days as the expected range. I admit that I was disappointed that they didn't show up at 84-85 days to completely diffuse this discussion.
As for semantic differences, the word factoring means specific things to many people, so I would argue for clarity as long as we agree on the concept.
BTW while I understand my comments come off as cheerleading to some, they are my fundamental viewpoints. I do not anticipate that I will like LU as an investment idea forever. However, for now, I think it is the best opportunity on the tech board. |
