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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (231803)	3/28/2003 2:02:21 PM
From: Mark Adams	Read Replies (1) \| Respond to of 436258

Mike, I think about the only useful function of 'proforma' is in the creation of historical numbers in the case of a merger/divesture. Even then, I must be careful not to make linear projections based on apparent 'proforma' trends. Things are the same until they aren't. I think we agree accounting has become more creative in recent years- but can we really compare a PE based in the '70s to today's 'core' earnings? How do we know the numbers were clean then? I doubt pension fund rules have changed in the past few decades, so pension income surely played a role in PEs historically. It just wasn't the tail that wagged the dog, I'd guess. On the trade deficit issue, I get pretty confused when I try to think about foreign affilate income and non-repatriated earnings held in offshore subsidaries. I hear microsoft is waiting for rule changes that would allow it to repatriate a bundle tax free. I assume they aren't alone. All I know, is the world is far more complex than my limited models of reality can cope with.