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To: tinkershaw who wrote (51138)	4/28/2002 8:22:06 PM
From: Ali Chen	Read Replies (1) \| Respond to of 54805

"And I strongly disagree with the assessment the new accounting rules will change valuation of companies." Maybe we are talking about different things here. I guess the question comes down to to what extent the stock price is dictated by big money professionals (who read between GAAP strings, calculate forward valuations, and act accordingly), or it is mostly momentum-driven mom-n-pop "investors" who take the GAAP at the presented face value, and pour their earned money, just to be departed from them. If you mean the former professionals, I would agree with you. But I guess that many individuals who frequently post on SI do not belong to that category. In my lovely example, Intel, when they got to their uniform spending of $4B/year on stock buybacks that are not a subject of GAAP reporting, for at least 2years, the WS valuation perfectly reflect this (among other factors I guess), no matter how Intel officials are upbeat in their braggings about "continuous profitability": siliconinvestor.com Yet many SI individuals continue to throw the Intel's profitability fallacy at any opportunity. So, I guess, the GAAP-based valuations have two faces. - Ali