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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (13947)	2/17/2002 1:03:53 AM
From: James Clarke	Read Replies (1) \| Respond to of 78667

All this talk about accounting and its easy to forget that the biggest change in the current year is one that increases earnings, dramatically in a lot of cases (IUSA for example), and is completely legitimate. Its an adjustment I've always made routinely. Goodwill amortization. I'm no big fan of this accounting change only because it eliminates one of my favorite games. If the market is going to blow up I think it comes from one of two places - JP Morgan/Chase blowing up, or a major macro shock from Japan. I am not short JP Morgan, though I probably should be. Forget P/E or P/B. If what I think is likely to happen happens, historical numbers ain't gonna matter.

To: Don Earl who wrote (13947)	2/19/2002 10:45:51 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 78667

Don Earl: <<What it basically comes down to is very large operating expenses are not being expensed at the rate they are incurred.>>This appears well confirmed by this comment: "TSC: According to a survey you discuss in your book, when public companies manage their earnings, nearly half the time they do it through the timing of when they recognize expenses. Nearly 20% of the time, it's through revenue recognition." From thestreet.com If you have or come across articles confirming your position on SAB 101, please post a link. It's an interesting hypothesis.