Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: ViperChick Secret Agent 006.9 who wrote (5996)	1/24/1999 9:05:00 PM
From: Smilodon	Read Replies (1) of 122087

BVSN has been on the short radar screen due to accounting irregularities. I don't have the specific details with me (at home), but they essentially used non-cash transactions to meet their estimates for the last two quarters. In one case they signed a long term contract with another company, and took stock as payment. They valued the stock at above its market price (at the time of the transaction) and realized the majority of the purchase in that quarter, even though the software would be delivered over time. The result was showing a large non-cash revenue number, that allowed them to meet their net income number, yet showing an unrealized loss on their balance sheet. I think I saw another PR from them that indicated they may do another of these non-cash sales/partnerships this quarter. I had heard rumors they were in jepardy of not making their quarter. But, on the other hand, my industry research showed their product was the best in the high end. So, I think I will wait for it to crack to put on a short position. Eventually other high-end competitors and MSFT and SUNW from the low end will put them in a difficult position. Archer

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