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Politics : Formerly About Advanced Micro Devices

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To: TimF who wrote (248362)8/31/2005 7:02:47 PM
From: combjelly  Read Replies (1) of 1573014
 
"I don't think the quarterly report is a bad idea."

I don't advocate throwing out quarterly reports, but replacing it with a mechanism where the quarterly report is only one factor where performance of the company is measured. As it is used in the US, it discourages long term planning by any company that isn't a quasi-monopoly. And you often wind up with a GM where quarter to quarter they don't look so bad, but when you look at the company year over year or 5 years over 5 years, the trends are clearer. If the industry is moving very fast, then relying on just the quarterly report might be ok, longer horizons are probably meaningless. But for something like the auto industry, the quarterly report is probably more harmful, leading to things like "employee discounts for all" or "zero interest financing" which can boost sales for a quarter or so but have long term negative consequences.
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