Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Clarke who wrote (16689)	3/26/2003 12:33:41 AM
From: Steve168	Respond to of 78625

James, check out WWCA and let us know what forensic accounting tell us. I suspect WWCA is another big fraud in the making. All, please check it out and let's have a discussion here. It is always easy after bankruptcy, it is hard and interesting if we can learning something from an ongoing one and debate if it is one.

To: James Clarke who wrote (16689)	3/26/2003 11:17:22 AM
From: Dave	Respond to of 78625

How can you say that? HealthSouth said a few days ago not to analyze its financial statements since they are inaccurate. HRC had significant Off Balance Sheet activity. For example, the PV of its Operating Leases is around $1 Billion as of 2001. Next, look at their restructuring charges. Plenty of hits to the PP&E line item which somewhat implies that HRC could've been taking as a one time charge future Depreciation Expense. Therefore, since this is a "one time" charge, future Operating Income should be higher since its Depreciation Expense is not fully recognized. What everyone forgets is that it is quite easy to be a "Monday Morning Quarterback"

To: James Clarke who wrote (16689)	3/26/2003 2:21:13 PM
From: Jurgis Bekepuris	Respond to of 78625

James, OK, let me take a stab. :-) I'd like to hear your comments on my attempt even if you think that I should not try to analyze another financial statement in my life and should quit investing tomorrow. :-0)))) OK, cash flow statement. Let's assume the "Net cash provided by operating activities" correct. Then, it seems that the net income could have been inflated with the last two lines ("Accounts payable and accrued expenses" and "Inventories, prepaid expenses and other current assets"). They changed significantly from 2000. I don't know why, so I can doubt them. If we set them to 0, the net income becomes approximately 150M loss or 20M gain if we add back the 170M loss on sale of assets (is this a one time loss?). I don't think "Provision for doubtful accounts" change since 1999 is a red flag, since it corresponds with the similar change in AR. Maybe I am wrong. I don't know what "provision for deferred income taxes" is but since it decreases net income, I don't change it. :-) Now, for the free cash flow. It seems that from 670M "Net cash provided by operating activities" you have to subtract 440M "Purchases of property, plant and equipment". Then comes tough part - what else? I would guess "Purchase of limited partnership units" 48M, "Changes in other assets" - hell knows what that is - 80M, and possibly "Payment of cash distributions to limited partners" - 63M. Which gets to 39M "FCF". BTW, which line(s) in the statement of cash flows account for the payment of interest on debt? That's pretty much what I saw. If you don't want to spoil the fun of digging through 10K for others, you can comment on my observations through private message. Thanks Jurgis - did I get an F?