Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.20

+0.1%

Dec 26 9:30 AM EST

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To: wanna_bmw who wrote (141805)	8/16/2001 9:35:09 PM
From: Robert O	Read Replies (1) of 186894

I'll comment since I went back and forth with Pea on this issue. Nothing in the article refutes my assertion that the Street knows how to see through obvious differences in presentations. In fact, the article makes this point!! Companies have a great deal of freedom in what they can choose to exclude in crafting pro forma earnings. Small wonder that the definition of pro forma is "hypothetical." Companies report only their GAAP earnings -- not the pro forma earnings -- to the Securities and Exchange Commission. The pro forma figures are reported only in press releases. Lynn Turner, the outgoing SEC chief economist, calls the pro forma reports EBS earnings -- for "everything but bad stuff." The KEY is that SEC requires the GAAP presentation for the financials of public companies. Any pro-forma game playing for 'press release effect' as the article implies may fool only the most naive of investors, i.e., retail suckers. Institutional money will quickly arbitrage away any foolishness like that... isn't that what we see in after hours action after some earnings anncmnts.? Next day real time trading reverses small timers who bit on pro forma or BS CC talk. Hope that helps clarify my (limited) pro-SEC stance. Pea wants to BAN proforma presentations altogether, but that makes no sense since there is no need as long as GAAP is mandated. RO

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