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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (4521)	3/26/1999 6:11:00 PM
From: AlienTech	Respond to of 6021

>>Taken in that context, Larson's willingness to cut costs <because of the change in accounting conventions disturbs me. I don't know how to make it any simpler.<< It is very simple. Instead of 600K revenues per employee, They have 800K. If the stock stays in the 30's we might even get to 900K-1M/employee.

To: Chuzzlewit who wrote (4521)	3/26/1999 7:38:00 PM
From: AlienTech	Read Replies (1) \| Respond to of 6021

Wonder why someone would buy 1000 APR 30 puts for 125k and dump some shares to tank the stock 2 points. NEW YORK, March 26 /PRNewswire/ -- Read the following articles exclusively at S&P Personal Wealth (http://www.personalwealth.com). Standard & Poor's is a division of the McGraw-Hill Companies: "Network Associates Poised to Ride the E-Commerce Wave" personalwealth.com Mention the word software, and most people will probably think of Microsoft Corp. (Nasdaq: MSFT). But while the tech giant does dominate many areas of the software business, there are other segments where the company is not a player. These include network security and anti-virus software, where Network Associates (Nasdaq: NETA) is a leading supplier. In order to get a closer look at the company (which currently carries a 5 STARS (buy) ranking), Personal Wealth recently spoke with Brian Goodstadt, software analyst with S&P Equity Investor Services. Find out why he?s bullish on NETA?s outlook in the latest Equity Insights.

To: Chuzzlewit who wrote (4521)	3/27/1999 12:30:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 6021

I cannot agree that the SEC accounting changes do not change the picture on true profitability. Let's consider a hypothetical example with two companies with exactly the same revenues and exactly the same profits - 1 billion and 100 million resp. Now let's say that company A makes an acquisition for 100 million and this company had sales and profits of 100 million and 10 million resp (a similar company one tenth the size). Company A fully writes off this acquisition instead of carrying it as goodwill which is the true cost of the acquisition. Since the cost of the acquisition has been written off, and the number of shares have not been increased, company A shares are now worth 10% more because the company will be earning 10% more per share. Thus, the profitability picture has been changed substantially. I am not an accountant and since you know so much about accounting, could you please point out what's wrong with the analysis. Thanks a lot.