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

To: Alexander Pavlov who wrote (11953)	7/23/1998 4:51:00 PM
From: Roger A. Babb	Respond to of 18691

Alex, CNWK and AMZN are not the only companies fudging earnings. The "quality" of earnings has been on the decline for two years now. They include one time gains as earnings and writeoff everything from R&D to the ceo salary. Also creating many future shares with management options that dilute future earnings. CTXS is another good example. I learned long ago to "follow the cash". If a company is burning cash it is headed for eventual trouble regardless of reported earnings.

To: Alexander Pavlov who wrote (11953)	7/24/1998 2:58:00 AM
From: Marconi	Read Replies (2) \| Respond to of 18691

Hello Mr. Pavlov: Your namesake has a ring to it that brings to mind a sound reason why these unseasoned managements cook the books. They are acquainted with the equity markets. They also must be very preoccupied with share prices out of line with any sense or reason. Such reporting is not the voice of confident executives, but of management chicken of what may happen to their stock price--something they don't really know or understand, and have little control over. How blessed we would be if they were contented already with their windfalls, and used the common language of business spoken in GAAP with their future integrity in mind. Regarding the analysts--published fodder for a future round of sackings.... Best regards, m