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

To: Les H who wrote (74969)	2/1/2000 1:17:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 132070

one system equals 50%+ of profits? WOW!

To: Les H who wrote (74969)	2/1/2000 10:31:00 AM
From: Knighty Tin	Respond to of 132070

Les, this is the old merger scam that Earlie and I were talking about when Intel reported their fairy tale eps. Basically, they write off inventory at the acquired company, and, in this case, delay a major deal closing until the quarter when they are merged. So, the losses go on ETEC's record, and they no longer exist if the merger takes place. Then, when they are part of AMAT, the written down inventory is sold for something at 100% profit and the big deal is recognized that quarter. Lo and behold, a management miracle. Both revenues and profits, along with profit margins, are "better than expected" at the combined company in their first full quarter. The stock roars up in price. That is why many of these large companies have one or more mergers every quarter. I used to have a lot of respect for the mgt. at AMAT and am sorry to see them sinking to this level of scamming the eps. But that is one way the earnings fake-o game is played in tech stock la la land today, and if the guys at AMAT want job security, I guess those ethical considerations have to take the back seat in somebody else's Yugo. <g>