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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: john dodson who wrote (5937)	12/28/2000 2:05:27 AM
From: Don Earl	Read Replies (1) \| Respond to of 6021

John, You may enjoy this quote from the last 10Q also: <<<In December 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 101 (SAB 101), "Revenue Recognition in Financial Statements." In October 2000, the SEC released interpretive guidance on SAB 101 in the form of frequently asked questions and responses to provide guidance for revenue recognition under certain circumstances. The Company is currently evaluating the impact of SAB 101 on its financial statements and related disclosures, but does not expect that such impact, if any, will be material. The accounting and disclosures prescribed by SAB 101 will be effective for the Company's fiscal year ended December 31, 2000.>>> My guess is these guys are probably looking at a class action since it's going to be pretty hard to pretend they didn't believe the "impact" would be "material". It also looks rather bad that the CEO unloaded over 300K shares of stock ahead of the bulletin taking effect. I've been keeping an eye on the big losers over the past month and selectively picking out a few things. This one caught my attention today as it fits the pattern of the recent sell offs, but I think I'd rather see what kind of numbers they turn in for a few quarters before taking a position in the stock. The announcement really does make past profitability look more like accounting entries rather than earnings. The cash per share looks good at these levels, but there are a lot of beat up issues with very clean balance sheets right now. A couple you might want to take a look at are BRNC and LEAP. My guess is things are going to work out about like the "Asian crisis" of a few years ago when you could just about close your eyes and pick out any tech stock for at least a triple in the 3 months following December. Good luck.