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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (87904)	1/5/1999 7:51:00 PM
From: Chuzzlewit	Respond to of 176387

Darrell, it isn't just the software companies. It impinges on a wide range of companies in the tech sector. In fact, in a post to Jim Kelley a few weeks ago I warned about these practices with respect to Compaq's merger with DEC. Compaq and others hide ongoing expenses under the rubric "in process R&D write-downs" at the time of a merger. Then, even though the expense is ongoing, it has already been "front loaded", and so is ignored as an ongoing expense items. These practices are dangerous because they obscure the meaning and intent of earnings. Perhaps the entire industry is in need of a good slap upside the head, so they will stop playing fast and loose with investors. Bear in mind, that all that the guidelines do is change the way certain items are accounted for. They do not change cash flow. TTFN, CTC