MANIPULATION IS RAMPANT --- Can We Stop It? 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.

Pastimes : MANIPULATION IS RAMPANT --- Can We Stop It?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Raymond Duray who wrote (519)	8/1/2002 10:32:49 AM
From: Dave Gore	Read Replies (1) of 589

Where's the Cash Flow Statements? Another example of how the small guy is the last to get key info to a company's health: whole article: marketwatch.com ** "Giving individual shareholders access to a cash flow statement along with the earnings release would give many of them a shot to investigate statements with a more skeptical eye. It would even give many shareholders a better shot at avoiding stock losses due to faulty financial accounting. To be sure, poring over a cash statement and making it correspond with a company's balance sheet isn't as easy as playing the meet-the-number game most small investors use to judge a company's performance. But the investors who dig through cash statements with a skeptical eye are likely to find potential problems -- and tip off other small shareholders to them. IBM (IBM: news, chart, profile) failed to disclose a $317 million asset sale at the end of 2001, causing a stock sell-off when it was eventually discovered. The item was eventually reported in its regulatory filings when the company issued a cash flow statement. Had IBM been forced to issue a full cash flow statement when it first came out with fourth-quarter 2001 earnings, shareholders could have known immediately that the company's earnings would have fallen fall short without the asset sale. A closer examination of cash flows would have likely resulted in analysts unraveling several accounting scandals that have recently rocked the financial world much sooner.** WorldCom this year ended up with a $13 billion line item on its cash flow statement from capitalizing multiple expenses - a sore thumb, it turns out. With few exceptions, a company's cash level is supposed to move in the same general direction as its net income or loss."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next