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

To: Bob Rudd who wrote (16672)	3/23/2003 2:17:09 AM
From: James Clarke	Read Replies (2) \| Respond to of 78618

HRC - I'll give you all an exercise that will make you better investors. Print out just three pages of HRC's 2001 10-K, the balance sheet, the income statement and the cash flow statement - don't even worry about the footnotes. Study these for a couple hours and if you can't find HUGE red flags you're going to get burned by the next HRC too. The Wall Street Journal article last week basically said if the auditors couldn't find it how could investors? B.S. When this dropped to 7 last September I looked at it - and it took about 30 minutes to pass. And all I looked at were those financial statements. I would have read the whole document if it wasn't so obvious that I didn't want to own this. Look at the cash flow statement - I mean REALLY look at it - every line. A rigorous study of HRC's 2001 cash flow statement will save you a lot of money in the future because you'll regognize it next time. If you believe like the Wall Street Journal said that management executed this fraud so well that investors were helpless you're missing a huge opportunity to learn something big and avoid the next one. There are things in this company's financials that were in Enron's and Worldcom's. Those were "who coulda known?"s too. But the same people who avoided those all the way down avoided HRC too.