Jim,
I never claimed what IBM is doing is illegal, I only complained of their poor quality of earnings. And while IBM my have been expensing capital gains since 1994, it has never had the magnitude effect that it did as in the last two quarters. Can't you see that IBM has artificially inflated its earnings, in the second and third quarters of this year, in order to make their numbers. Without this treatment of expensing a one time capital gain, IBM would have fallen far short of their then estimates. Other companies do not expense gains, and even though it may be legal, it is a very deceptive presentation of IBM's financial statements, at best. I didn't like the practice 19 months ago, I didn't like it six months ago, and I don't like it now.
Jules |
