Silicon Investor (SI) -- The First Internet Community

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.

Gold/Mining/Energy : Friede Goldman: FGI (formerly FGII) -- Ignore unavailable to you. Want to Upgrade?

To: dazzled who wrote (55)	7/16/1999 4:48:00 AM
From: Roebear	Read Replies (1) \| Respond to of 75

dazzled, There was an outfit called CFRA that hit on FGI for aggressive accounting practices. I posted their website on YAHOO FGI thread but have not had much time to research it today. Here is another poster who did and did not like what they saw, about CFRA! Here are a couple of reasons why I don't think people here are spending much time on the accounting issue: 1. The source of the report is an outfit that sells a monthly report based on "Schilit's Seven Shenanigans" -give me a break! Also consider this excerpt from their website: "Short Ideas -- An important segment of CFRA's clients use our product as a source of short ideas." The accounting issue was created as much as it was discovered by a niche outfit that has a very clear purpose in mind when it writes its reports. CFRA writes negative reports that it sends out by overnight mail to its customers before the information gets to the press. In essence, they create their own bombshells and those who pay the price get advance notice. That sounds like a nifty trick for shorting, doesn't it? Just my take on CFRA, but it looks pretty sleazy to me. Take a look at their website and form your own opinion. schilit.com 2. The merger process would likely have uncovered any real problems. There are probably a few legal and accounting types taking a closer look at FGI than CFRA did. 3. The company hasn't said much, but what they have said is that this is pretty much a non-issue. Sure I have a financial interest in FGI doing well, but FGI's response sounds reasonable. See Tuesday's Sun Herald for example. sunherald.com Just a couple of thoughts. I will be tied up till Sat anyway, if you have a chance to look up their website meantime I would be glad to hear your opinion of CFRA. Best of luck, Roebear

To: dazzled who wrote (55)	7/16/1999 5:08:00 AM
From: Roebear	Read Replies (1) \| Respond to of 75

dazzled, I did have time to pick out at random 3 stocks they (CFRA) have "gotten the goods" on recently, last spring time frame. Here are the results of their charts from before to after CFRA report and then till now. SYKE 30 to 22 22 to 34 LU 65 to 53ish 53ish to 75 SLR 51 to 42 (I can't find exact release date so its somewhere in this range) now 72 CFRA has done a lot of companies from SYKE to Starbucks and 3COMS. Draw your own conclusions, this is all I have time for. But I feel better already! VBG Roebear