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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: S100 who wrote (112552)	2/8/2002 12:38:32 PM
From: Jordan Levitt	Read Replies (2) \| Respond to of 152472

My Response to Dr. Schilit: Message #112552 from S100 at Feb 8, 2002 12:28 PM Financial Shenanigans Dr. Howard M. Schilit Center for Financial Research & Analysis cfraonline.com howard@schilit.com 301 984 1001 <<What are Shenanigans? Shenanigans are actions or omissions designed to hide or distort the real financial performance or financial condition of a company>> <<Why do Shenanigans Exist?>> <<It pays to do it (greed factor)>> Management is already wealthy beyond their wildest dreams <<It may boost performance-related bonuses>> Same answer as above. Anyone think jacobs needs little extra in his bonus package. Absurd ! <<It may prevent negative outcomes (fear factor)>> Like what ? <<It may help company obtain financing>> This company requires no financing. <<It may dispel negative market perceptionsIt may help company financing covenants>> The company has made changes over the last year that were all more conservative, not less ! <<It is easy to do it>> When has this company done anything the easy way ? <<It is unlikely you will get caught>> This company is highly scrutinaized, and does virtually zero investment banking business. It has been a long time since they issued any equity or debt, and they do not grow by acquisition ! <<What Types of Companies are Most Likely to Use Shenanigans?>> <<Companies with a weak control environment>> <<Management facing extreme competitive pressure or known or suspected of having questionable character>> Umm, no! <<Small fast-growth>> It is certainly not small, and many would say it is no longer fast growth <<Newly-public companies>> Does not apply <<Privately held companies>> Nope <<“Basket-case” companies>> Nope This is a specious report. These are ridiculous.