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Strategies & Market Trends : Misleading Earnings Reports -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (6)	9/24/2000 9:36:38 PM
From: Roger A. Babb	Respond to of 53

PWER used "proforma" accounting last quarter to turn an earnings miss into beating estimates. The two press releases are: www2.marketwatch.com and biz.yahoo.com The analysts had predicted .30 and there followed a great debate as to whether the GAAP .28 was a miss or the cash .38 beat earnings as the company claimed. Was interesting that Yahoo research then reported that both the estimate and actual was .28!!!! (Note that these numbers should be divided by 2 to account for recent split.) What is most disturbing about the proforma accounting is that it varies from company to company and even from quarter to quarter within the same company as they struggle to support their valuations.