OK I still like this company long term. But there is something that is throwing up a flag for me. From the press release.
1. The Financial Accounting Standards Board (FASB), on April 21, 1999, recommended the elimination of the pooling of interest
accounting method for mergers at some future date, expected to be sometime during the year 2000.
2. The DCI statement quoted Dr. Debra Jeter, an Assistant Professor of Management at Vanderbilt University's Owen Graduate
School of Management, commenting on the pooling and purchase methods of accounting in a recent CNN newsletter, as
saying, ''Even though a change is being made, no cash difference exists between the two methods. If the market is perfectly
efficient, it should be able to see right through it, and it shouldn't make any difference. And it won't mean that using the purchase
method will turn a good deal into a bad one, or vice versa.''
My question is, if these two statements are true then what is the BIG DEAL here? Something is not adding up IMHO. Why would the SEC stop trading on this point? I don't get it. |
