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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: posthumousone who wrote (14692)	3/7/1998 10:54:00 AM
From: Zeev Hed	Respond to of 18056

Gary, I agree with you relative to "returns" and "doubtful receivables" (unreturned returns <VBG>). The company has a lot of leeway as to when to recognize these. Sometimes, they will even play games with sales, by either delaying or accelerating shipments in the last few days of a quarter. If the quarter looks good, they will hold shipments to the next quarter and if not so good, they will accelerate shipping out of the docks (sometimes to one of their own distribution centers) shipments that they know will be required in a week or two. There is a lot of "accounting engineering" going on, to assure Wall street of a "smooth" rather than "ragged" growth curve. Of course, when major shifts occur, there is no way these accounting engineering" tricks work and then they preannounce. Zeev