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Technology Stocks : Booking Holdings (formerly Priceline) -- Ignore unavailable to you. Want to Upgrade?

To: B. A. Marlow who wrote (1315)	5/15/1999 1:25:00 PM
From: Tom Hua	Read Replies (1) \| Respond to of 2743

BAM, To my knowledge, Blodget has never labeled any other internet stock "extraordinarily expensive" like he did PCLN. But he has all angles covered. If PCLN stock goes up in the future, he'll take credit for his "accumulate" and long term "buy" ratings. If PCLN drops, it's because he thinks the stock was "extraordinarily expensive". Regards, Tom

To: B. A. Marlow who wrote (1315)	5/18/1999 11:01:00 PM
From: MarX	Read Replies (2) \| Respond to of 2743

Last weekend the New York Times wrote an inept article criticizing some of the accounting policies of the internet companies. The differences between the "pro-forma" and actual income reported contain the same kind of items that all companies are using (or abusing), ie, charges related to acquisitions, write-off of acquired R & D, etc. They failed to mention the most flagrant misuse by a net company of generally accepted accounting principals. I am referring to PCLN's revenue recognition policy on "sale" of airline tickets. They recognize the full value of the ticket "sold", when in reality they are merely the middle man; they never own the tickets; they are not liable to the airlines for unsold tickets. Their revenue on this transaction should be the commission or fee that they earn as the middle man (I understand this would, on some occasions be a negative number). It's very easy to show huge growth on the top line (and after all, it will be years before net companies will be valued on the bottom line) when revenues are recognized in this phony manner. I would be most surprised if the SEC will permit this.