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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: jayhawk969 who wrote (2843)	10/18/1998 3:59:00 PM
From: Chuzzlewit	Respond to of 4509

More on GSCO ... In an earlier post I documented GSCO's huge market share of the BMCS trades, and how I believe it stood to profit from large increases in volume which results from upgrades and downgrades. I also alluded to its stated concerns about decreasing "quality" of earnings at BMCS, as reflected by a decrease in their deferred revenues. However, if you examine BMCS balance sheet and compare it to the one made six months ago you discover that deferred revenues increased by nearly 50% over the period: biz.yahoo.com Now, what makes this that much more bizarre is that the "decrease" or flatness was expected. MSDW published the following report on Sept 28, 1998, by Glenn Reicin and David Zimbalist, and I quote in part: "Deferred revenue has increased significantly over the last two quarters as the company got ahead of the curve on big deals. ... "Management cautioned that the last two quarters were abnormal, and deferred revenue won't grow at that rate going forward. The company landed a few unusually large deals in a short period of time. Although there are more large deals in the pipeline, management isn't counting on them for near-term revenue. Consequently, deferred revenue should be flat to up $10 million sequentially." I am sorry, but this is quoted from hard copy, so I cannot provide you with a URL. Italics added for emphasis. TTFN, CTC