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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Mani1 who wrote (146894)	5/6/2002 12:00:21 AM
From: tejek	Respond to of 1573678

Peregrine shares plunge after earnings delay NEW YORK, May 1 (Reuters) - Shares of software maker Peregrine Systems Inc.<PRGN.O> lost half their value on Wednesday after the company delayed the release of its quarterly results because its new auditors need more time. Peregrine said late on Tuesday it would postpone the release of its fiscal 2002 fourth-quarter and full-year financial statements because its new auditor KPMG, which replaced Arthur Andersen, needs more time. Shares of Peregrine, which makes software that helps companies oversee their assets, fell $3.40, or 50 percent, to close on Wednesday at $3.45. The stock was the biggest loser in percentage terms and among the top net losers on the Nasdaq stock market. Peregrine, which announced the delay after the stock market closed on Tuesday, was scheduled to report fourth-quarter and year results on Thursday. It said it would issue more information next week. "My interpretation of the stock's behavior is that folks are backing away from it because they're concerned there may be a problem," First Albany analyst Damian Rinaldi said. However, bolting investors may be wrong, he said. "In looking at the situation that Peregrine is in," Rinaldi said. "I can point to a number of reasons why a delay isn't unreasonable." First, KPMG was hired less than four weeks ago to replace Andersen, the former auditors of scandal-plagued Enron Corp.<ENRNQ.PK>. Second, during the fiscal fourth quarter Peregrine said it would divest its business-to-business Supply Chain Enablement unit, making the financial statement a bit more complex than usual. Third, in the current post-Enron environment, where investors are suspicious about the integrity of corporations as well as auditors, both are under increased pressure to ensure that financial statements are clean and stand up under scrutiny. "Put all that together and what I think you have in this situation is uncertainty all around," Rinaldi said. 05/01/02 16:31 ET Copyright 2002 Reuters Limited.

To: Mani1 who wrote (146894)	5/6/2002 6:14:36 AM
From: TGPTNDR	Read Replies (1) \| Respond to of 1573678

Mani, Re: <PRGN? Huge risk and huge rewards.> I'd have said "Huge risk and Big rewards." The question there, for me, is "Did they fire Anderson to evade the specter of Anderson's shame or did they fire Anderson because Anderson's 'getting religion' and refused to pass on shady books?" In the first case PRGN's most likely undervalued. In the second it may be a 'going out of business sale'. I'm in for a dime, but not for a dollar on this one. tgptndr