Robert, The first rule of finance is that "you can't spend more than you make." The second rule is that "if you do spend more than make, you can't do it for very long!" His majesty, the Bearded One, has gained great stature on this thread with his statement "it only takes one quarter." (I'm envious of his prediction, and maybe I do feel a bit "duped.")
But I guess you're right, I'll probably be "duped" again, because I believe this action today is a re-setting of Corel's accounting methods to match "revenue recognition" closer to "revenue collection." This adjustment will make it easier to recognize "real" earnings, or "real" losses in the future.
Corel is guilty of positive spinning. Can you name any company who is not guilty of the same thing to one degree or another. Have you ever been guilty of positive spinning--your last resume' perhaps?
Don't forget, Corel is subject to an annual independent audit required to keep them "honest," at least to the letter of the law. And that audit isn't very far away. I believe Corel is making every effort to create earnings that can match their positive spinning. Even Intel and Microsoft use positive spinning every day, but they have backed it up with earnings. Corel is not all that "far away!"
Up, UP, & Away!
Scott |
