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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ciVic who wrote (59825)	10/4/2000 8:46:37 AM
From: Benkea	Read Replies (2) \| Respond to of 99985

WSJ has a story today titled "Delay in Change of Merger Rules Sought in Congress". It is so absurd. "Six Democrats said the changes 'will make mergers and acquisitions very difficult for high-technology companies.'" And, "Mr. Barksdale (of Netscape fame) has said that America Online Inc.'s $10 billion purchase of Netscape would never have happened if pooling wasn't an option." The deal has EXACTLY the same economic effect whether it's done with pooling or purchase accounting. There is NO diff in the economic reality between the two. However, companies have grown accustomed to legally committing financial fraud on the public with the games that have arisen from pooling and the training of "investors" (probably the ones who had a "dismal September" according to CNBC) to ignore the unignorable. (September was one of my best months ever - with little trading at that). Next thing you know, those wacky guys at the FASB will want to expense options granted for compensation as wages or something :-) This whole tech accounting game is nothing more than moving the three shells so "investors" can't find the peanut. The abolishing of pooling takes away 1 of the shells and correct above board options accounting takes away another. They're terrified because with only one shell left under which to hide the peanut, "investors" wouldn't have any choice but to see the economic reality which isn't even close to what is reported. Oh, the horror!