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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: tonto who wrote (6774)	11/11/1997 8:51:00 AM
From: Roger A. Babb	Read Replies (1) \| Respond to of 9285

tonto, I was noticing the same thing as you about TLC. Most folks do ignore the writedowns, but that is real money that was paid out either by cash, debt, or dilution. I have not made a decision on this one yet, but it looks fishy. A company can create the illusion of earnings by buying other companies with earnings and then writing off the cost of the purchase.

To: tonto who wrote (6774)	11/18/1997 12:28:00 PM
From: campe	Read Replies (1) \| Respond to of 9285

Here's an excerpt from Leroy Stockman's newsletter relating to TLC. Looks like someone else follows you way of thinking. I've watching TLC from the sidelines since last summer... Subject: TLC's accounting needs to change LeRoy, I have shorted TLC because: TLC uses a 'quirk' in accounting to artifically boost eps 'before earnings', and promotes the eps figure as a measure of growth. TLC has never been able to grow their revenues, but instead buy companies. They then take the revenue, add to their top line and relegate the associated cost of sales off to write downs. They've been quite successful with this technique, because investors seem to ignore the last line of the income stmt, highlighting the true loss per share. reply: Isn't this an interesting twist....any others you know about?...LS $$$$$$$$$$$$$$$$$$ End of Update $$$$$$$$$$$$$$$$$$$