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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Pancho Villa who wrote (5587)	3/26/1998 7:03:00 PM
From: Roger A. Babb	Read Replies (5) \| Respond to of 18691

Pancho, I wonder how long it will be before investors catch on to the accounting subtrifuge going on in this market. The MANU report below talks about "record" earnings. But of course there is a big R&D writeoff. The bottom line is they lost $.90 per share! Any company can show a big operating profit by writing off its expenses. This method can show big operating profits quarter after quarter, right up to bankruptcy. Those writeoffs are real dollars out the door, a reduction in stockholder equity, and the market is really blind to ignore them. But it does ignore them, and MANU will soar tomorrow in spite of the huge loss.