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Value Line, Inc. Message Board

  • scifijoe2001 scifijoe2001 Oct 10, 2013 3:51 PM Flag

    Bleeding cash

    nobody is talking about them bleeding cash?

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    • The cash situation you accurately describe as "bleeding cash" is a result of the CFO's and independent account's "Ana-magical" accounting whereby they employee one of the time tested gimmicks to boost earnings to wit:
      Source: Google Search Keyword "7 Techniques of Accounting Gimmicks - Be Ware!"
      Gimmick#4. Shifting Current Expenses to a Later or Earlier Period
      There are five techniques commonly used under this category. They are:
      ■ Capitalizing normal operating costs, particularly if recently changed from expensing
      What Types Of Companies Are Most Likely To Use Accounting Gimmicks?
      ... signs often include:
      ■ A weak control environment [i.e., lack of independent members on the board of directors or lack of competent/independent external auditors].
      ■ Management facing extreme competitive pressure
      ■ Management known or suspected of having questionable character
      Be particularly alert for these factors in the following types of companies:
      ■ Basket case companies that are struggling to survive
      I would add to this list a company controlled by a single investor who has likely been wrongly convinced by those she trusts most, i.e. the current CEO and CFO, that she is hated and it is in her best interest to follow their advice when, in fact, they are only are protecting themselves.
      I find it incredible that Marianne, Janet and/or Ned haven't stepped up to ask some hard questions and investigate for themselves what has really transpired. After all, it is largely their inheritance that is being squandered. I recall when Marianne called me in May 2005 and said “You have some real ___s to take on Henigson.”
      The $64 question is whether the no-so independent BOD will approve the 15 cent dividend.
      The final chapter has yet to be written (literally), but it is getting close.
      JRD

      • 1 Reply to k731607
      • Two corrections to the previous post:

        "The cash situation you accurately describe as "bleeding cash" is a result of the CFO's and "independent" accountant's "Ana-magical" accounting whereby..."

        "I would add to this list a company controlled by a single investor who has likely been wrongly convinced by those she trusts most, i.e. the current CEO and CFO, that because she is hated it is in her best interest to follow their advice when, in fact, they are only are protecting themselves."

        JRD

 
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