Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSFT - 1999: The "Make-It-or-Break-It" Year? -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (330)	3/27/1999 7:29:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 1274

Call PSFT and ask them about the pooling of interests issue; IBM can't do it with PSFT now; several analysts have acknowledged this as well, including our favorite Brian Skiba at Lehman (he of the serial strong buys), who also by the way says that SAP's strong partnership with IBM (which is anyway my personal favorite reason for there being no merger between IBM/PSFT) would preclude a deal Accounting illusions? I agree. Amortizing all that goodwill is an accounting illusion because they are non-cash charges against earnings. But let me quote PSFT's CFO explaining the MMTM action: "the fact is that investors in the market right now are very focused on P/E ratios.." And PE ratios do take that goodwill into account. Hey, I don't make the rules. PSFT does, and the SEC lets them. <g> good investing, mike