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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Pied Piper who wrote (9233)	2/5/1999 12:45:00 PM
From: Smilodon	Read Replies (2) \| Respond to of 122087

I have done some work on BVSN. Good company but bad accounting. They have the best software in a good industry segment. But orders are large and lumpy. This has caused competitors like OMKT to crash. To combat this, BVSN used some creative accounting in Q2 and Q3 to make their quarter. Basically non-cash revenue, and stock deals at above the market prices. Very fishy. (For more info read the Q2 and Q3 10Qs, and determine the diferences between operating cash flow and net income). I considered shorting it, but passed as their underlying business is strong. But the accounting shenanigans are a big red flag and coupled with the nose-bleed valuation makes this a definite no-go on the long side. Beware, accounting games often foreshadow problems in the business, so figure the risk of problems is higher than normal for this company. Regards, Archer