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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Michael W. Pittenger(Hijacked) who wrote (13832)	4/30/2004 7:31:20 AM
From: tom pope	Read Replies (1) \| Respond to of 14638

I think that the net/net is a wash (or will be when the fog lifts - and it sure wasn't lifted at the CC). My thought was that they increased prior period losses perhaps by booking larger than needed valuation reserves, accelerating expenses or writing off inventory, or any combination of the above. These would then be reversed in subsequent periods when management wanted to trumpet profits. The stock crashing can be explained by the realization by investors that the quarterly improvement in NT's financial results was less than had been reported, since the latest results were buoyed by the reversal of the excess charges (or whatever they were) taken earlier.

To: Michael W. Pittenger(Hijacked) who wrote (13832)	4/30/2004 2:08:24 PM
From: Ian@SI	Read Replies (2) \| Respond to of 14638

I'd appreciate it if someone could explain what I'm missing. Thanks! From the facts released by the company, it's probable that the most senior officers of the company defrauded shareholders. They underreported in one period thus lowering the bar for bonuses in a subsequent period. They then overreported in 2003, got the bonuses by deceit, leaving the company and its shareholders a little worse off than would otherwise have been the case. The question: How many more corrupt managers have to go before the culture in this corporation is better aligned with customers, shareholders and employees.