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

To: Bob Rudd who wrote (14534)	5/28/2002 10:13:57 AM
From: Dale Baker	Respond to of 78741

Anyone have opinions on ACN as a sector leader and value play at around 1.3x sales?

To: Bob Rudd who wrote (14534)	5/28/2002 1:56:04 PM
From: Bob Rudd	Read Replies (3) \| Respond to of 78741

ALD Sold on negative Greenberg article: Not because the substance was so damning, but because I'm about 0 for 3 taking the other side of Greenberg...his article will interest other shorts. I'm gonna stand aside and see how this shakes out. The essence of the issue Greenberg brought out is that the omission of auditor language, "We have reviewed the procedures used by the board of directors in arriving at its estimate of value of such investments and have inspected the underlying documentation, and in the circumstances we believe the procedures are reasonable and the documentation appropriate." is NOT mandated by a rule change as ALD's Sweeney claimed on the CC. She indicates she was following Andersen's guide. The concern implied is that the auditor isn't all that confident in the valuation methods. Greenberg cited a previous firm where such language changed that eventually blew up bigtime. This is reacting to a whiff of smoke rather than waiting for the fire....but waiting for the fire hasn't worked well for me recently so I'm going the other way. I'm out with a modest profit...if it sells off, increasing the margin of safety, I'll probably return. If events develop that indicate this isn't the start of a progression of negative newsflow, I'll return.