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To: Larry S. who wrote (42709)	8/12/2002 1:08:02 AM
From: Larry S.	Respond to of 53068

USAI - nice 5 year chart and talked up on Fortunes' WSW: chart: - finance.yahoo.com NEW YORK -(Dow Jones)- The following companies were mentioned on the Aug. 9 airing of Wall $treet Week With Fortune: USA Interactive (usai) USA Interactive's Chairman Barry Diller believes other companies will join his firm in not offering earnings guidance to Wall Street analysts. Giving guidance is a bad process, Diller said, and encourages manipulation to meet these targets. USA Interactive, in lieu of guidance, releases the budget its managers work toward and keeps analysts and investors up to date on how well the company is meeting that budget. The firm also plans to expense options given to employees as compensation. Top executives with other firms shouldn't fear the adoption of similar measures at their own companies, Diller said. Expensing stock options and not issuing guidance would help these managers "spend a lot less time with what I really do believe is a false game," he said. As for the fraud perpetrated by Enron Corp (NYSE:ENE - News). (ENRNQ) and WorldCom Inc. (WCOEQ), Diller believes their actions were symptomatic of the lax accounting business practices that emerged during the past 10 years. "I think the system that we all kind of got comfortable with presented a bank with no guards, no cages, no anything." USA Interactive, Walt Disney (NYSE:DIS - News) , AOL Time Warner (NYSE:AOL - News) , International Game Technology (NYSE:IGT - News) Larry Haverty, media analyst with State Street (NYSE:STT - News) Research & Management Co., likes USA Interactive for two primary reasons: Chairman Barry Diller's ability to attract strong managers and the firm's "tremendous" cash flow. Haverty believes that USA Interactive, which has a roughly $9 billion market value, generates at least $800 million of free cash a year. "That's very cheap under any set of circumstances," he said, adding that "the only business I've seen that's even close to this in cash generation is Microsoft." Walt Disney's stock trades at a low not seen since 1992 due to problems at its ABC network and its theme parks, Haverty said. The company, however, produces a healthy flow of cash, which should increase as the economy recovers. "The stock looks very cheap to us." AOL Time Warner is a "tough story" given the investigations into its accounting practices, even though its Time Warner operations are performing well. International Game Technology, which makes slot machines, is a "monumental cash-flow generator," Haverty said. Given that more states are likely to approve gambling, the firm's growth will accelerate.'