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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Simba who wrote (64779)	7/17/1999 8:48:00 PM
From: Earlie	Read Replies (2) \| Respond to of 132070

Simba: Good comments. I have written about this in the past. The best term I've heard to describe this is "buying revenues", and you are absolutely correct that Cisco is one of the best at this game. Over time, it can catch up with a company, as typically more and more is paid for less and less (the good ones get scooped up in the early going). Loewen Group was a prime example of this, although a crazy Mississippi court sure didn't do the company any favours. About once a year, I'll subtract the probable revenue contributions provided by acquisitions made by companies in which I have an interest, but it is a relatively useless exercise as the market simply doesn't want to know. Nor does the market care to calculate the amount of shareholder dilution some of these acquisitions cause. Reminds me of the total lack of interest investors exhibit in employee option scams,...er situations. (g) best, Earlie Your comments are right on. Best, Earlie

To: Simba who wrote (64779)	7/18/1999 11:15:00 AM
From: Knighty Tin	Respond to of 132070

Simba, The SEC has been complaining about in-process research. Now, the cos. report the real earnings along with the operational eps. For example, Yahoo reported headlines that they "earned" 11 cents per share pro forma and in the fine print you find that they really lost 7 cents. <g> Intel, in particular, has become something of an internet sector fund, which is just as well given the shabby state of its chip business. Cisco and MSFT do the same thing, but their core businesses are in better shape. Cisco has only survived by buying out leading edge smaller cos., so there is some method to their madness. Intel and MSFT just seem to be padding the eps statement. This wouldn't bother me if the losses, and there will be huge losses, are treated as part of eps the same way the gains are. They won't be, as these cos. know slick accounting and PR BS.