Pro-forma accounting gimmickry
Another way of saying, we can't produce real numbers so here is a smoke and mirrors formula that not even 2 CPA's can agree on. With the wrong way crowd of investors large and small bemoaning the sinking of all the USS Nazztanic rafts filled with leaks, you would think there would be even more personal accountability demanded and lots less complacency. Guess it is gonna take a much larger clobbering and far longer than most expect to fully wring the excesses, like the "unsinkable" Nazztanic bubbling down to 500-800. Gee, thanks alot Abby Jo, and Maria on Bubblevision, I keep on trustin' it will float back 'cause you tell me to! Lol. Anyways Here is an old post of mine from last year, I rarely check here any more. INSP is just another pro-forma #*&$)#, and the plummeting stock price accurately reflects it. Increasingly more conservative investors and large players under scrutiny won't put up with it any more, if it is losing money like a sieve, then it just does not deserve a larger market cap than a homebuilder that has tripled in price and still with a P/E of 8 making far more in real earnings for example. Sweet and simple, no games or gimmicks. Welcome to the new decade, a complete mirror of the excesses of the 90s. (By the way, gold stocks are also rocking and rolling, will be the internet stocks of the 2000's FWIW, all sorts of M&A there, setting off a bull market)
SEC threatens "pro-forma" cos. accounting
quote.bloomberg.com. topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position 1_topfin&middle=ad_frame2_topfin&s=APA0.LBXuU0VDIFRo
"Washington, Dec. 4 (Bloomberg) -- The Securities and Exchange Commission threatened to sue companies that mislead investors with pro forma accounting, which typically makes companies' earnings look better by excluding some costs..."
"...``I don't think the SEC had a choice in trying to put some teeth in getting companies to observe best accounting practices,'' said Dean Krogman of the Financial Executives Institute, a group of corporate fiscal officers. ``They've been getting pressure from investors.''"
"...About 200 to 300 companies, out of about 6,000 companies reviewed, use pro forma earnings, Thomson Financial First Call analyst Ken Perkins said earlier this year. "
I'd bet most of the 200 - 300 companies are techs.
Next the SEC should pursue the issue about QQQ trading & propping. |
