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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Junkyardawg who wrote (56006)	5/10/2000 12:13:00 PM
From: Pink Minion	Respond to of 122087

But until the Nasdaq demands that every company change their accounting That's like asking the Mafia to demand legalization of drugs. WHY WOULD THEY DO THAT? MH

To: Junkyardawg who wrote (56006)	5/10/2000 11:44:00 PM
From: peter michaelson	Respond to of 122087

Junk: In my opinion, it is not a question of one company having a comparative advantage over another. The point is that thru accounting tricks, reported earnings are made to increase over an earlier period for reasons not related to the real business. There is an appearance of increasing earnings, justifying a higher PE. At some point there are no more new tricks, or the old tricks have to be reversed (re-stated earnings), and the appearance of increasing earnings disappears. The stock price plummets - but of course the insiders know it is coming long before the average investor who thought that increasing earnings were due to a wonderful business, not accounting tricks. The insiders get out (or got out before), the average investor is left holding the bad. That's why it is a scam - I absolutely agree with Tony. peter