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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

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To: Amir Desai who started this subject12/19/2000 5:24:54 PM
From: opalapril  Read Replies (1) of 45548
 
One cause for concern:

A lot of companies seem convinced the market funk presents them with an opportunity to take advantage by loading down their Q financial reports with discretionary items, special charges, and other crap that normally wouldn't see the light of day. I have a relative who works a major Fortune 500 company who reports they've been working overtime since September making inventory well ahead for '01. Wage expenses will go in this Q, inventory will be treated as not-quite-finished, allowing the company to avoid carrying it in this Q. Result: Calendar year Q4 will look more terrible than necessary (but so what, they say, the stock will get hammered anyway) and Q 1 will look better than it should.

None of this is a secret to Wall Street. 3Com could do the same when this week's earnings are officially announced.
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