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To: GVTucker who wrote (147466)	11/15/1999 1:53:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 176387

I did not say they violated any law. After all, most of the accounting tricks companies are resorting to are in fact "legal" because "every one is doing it." Here are two situations to analyze: 1. GTW sells a computer for $1200, with $400 mail-in rebate for 3 year internet sign-up with compuserve. Gateway gets to report $1200 in revenue. Gateway gets to report $1200 in their top line of computer systems sales The net margins on this $1200 will reflect on the bottom line. 2. GTW sells a computer for $800, with a mandatory $400, 36 month deal for a $400 mail-in rebate for 3 year internet deal for Gateway.net. They report ONLY $800 in their top line (and the bottom line will not look pretty.) The $400 would go to revenues of internet division - amoritized over 3 years. Less growth to show less profit to show and hence lesser stock price. I don't think (1) is illegal at all. It is just a cheap trick which the market loves. Given the way market is rewarding gimmicks and cheap tricks, this will work out to be a good deal for AOL as well as they get to show good growth in membership.