Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sharp_End_Of_Drill who wrote (73945)	9/20/2000 1:30:37 PM
From: SliderOnTheBlack	Read Replies (2) of 95453

sharp end of the drill re: GOS acctg in Energy trading .... sorry you took such a simplistic interpretation of that. No one is comparing thier business fundamentals to the Sub Prime lenders and the subprime lenders did NOT lose money - they made huge, huge profits that outperfomed the best of all financial stocks - but; they collapsed because of the gain on sale accounting methods did not reflect the real financial health of the business and greatly exaggerated reality. The same "GOS/gain on sale" accounting method - will also greatly distory the reality of these new paradigm trading revenue & earnings models - much of the recent price movement of these companies has been based on the expectations in the "trading" area's versus the traditional business. I wouldn't be a shorter of them here; but if we get any "weather related" Nat Gas spike that in turn drives up these co's - oh yes; their short's. ENE has continually been talked about as overvalued based on this Internet Age/New Paradigm commodity trading valuation... No one speaks negatively about the quality management, their execution; nor even the potential of the trading business; it's merely the valuation assigned to this portion of the model & the valuations of "that" portion of the business are based on bad accounting models... I guess we shall see.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next