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Strategies & Market Trends : WR's Momentum Trades -- Ignore unavailable to you. Want to Upgrade?

To: Aduke who wrote (8593)	10/24/2000 8:12:30 PM
From: Wayne Rumball	Read Replies (2) \| Respond to of 11130

Last few day's I've been seeing alot of creative accounting in earnings releases. Companies claiming to beat estimates while taking large non-cash charges. Think it goes something like this; ------ CEO: "Hey Jim (CFO), we can't release thease earnings, the market will kill us, what can we do?" CFO: "No problem Tony, we'll just ask our employee's to give back some wages in exchange for stock options that they can exercise right away to give us the money. That way the street can cover our losses and we look like heros." CEO: "Good plan. You think we can get some of our suppliers to give us stuff against stock so that our real cost looks like 0?" CFO: "I'm on it" ------ You'd think this was a OTCBB story, but sadly, it appears to be a more and more frequent Naz story. Not sure what stock it was yesterday, but they beat the street by 30% or something, only lost about .50/share. However, including non-cash charges they lost over $6/share. It of course ran up. Seems eroding book value means nothing. Today's example NCNT. Weee they beat the street, only .36 in losses instead of .53. But um, they eroded book value by $1.06/share.......