Comments on: Is DELL Cooking the Books? http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/ Our beat: The stock market. Our job: Beat it. Mon, 01 Dec 2008 23:13:44 +0000 http://wordpress.org/?v=2.2.1 By: DELL: Meet the New Boss - Stock Market Beat - Our beat is the stock market. Our job is to beat it. http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-12652 DELL: Meet the New Boss - Stock Market Beat - Our beat is the stock market. Our job is to beat it. Thu, 01 Feb 2007 18:11:35 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-12652 [...] Well, at least we won’t be fighting in the streets with our children at our feet. But the change, it had to come. We knew it all along. Everything from the market share losses to the accounting issues told the world that a former management consultant was not the right person for the job. [...] […] Well, at least we won’t be fighting in the streets with our children at our feet. But the change, it had to come. We knew it all along. Everything from the market share losses to the accounting issues told the world that a former management consultant was not the right person for the job. […]

]]> By: Investing World Today » festival of investing - December 19, 2006 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-8485 Investing World Today » festival of investing - December 19, 2006 Tue, 19 Dec 2006 20:56:31 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-8485 [...] Trent presents Is DELL Cooking the Books? - Stock Market Beat - Our beat is the stock market. Our job is to beat it. posted at Stock Market Beat. [...] […] Trent presents Is DELL Cooking the Books? - Stock Market Beat - Our beat is the stock market. Our job is to beat it. posted at Stock Market Beat. […]

]]> By: Festival of Stocks Reminder - Stock Market Beat - Our beat is the stock market. Our job is to beat it. http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-8464 Festival of Stocks Reminder - Stock Market Beat - Our beat is the stock market. Our job is to beat it. Tue, 19 Dec 2006 19:07:02 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-8464 [...] We also submitted a post to the Carnival of Investing at Lazymanandmoney and another to the Carnival of Personal Finance at A Penny Saved. The author may hold a position in the securities discussed. The author's current holdings are as follows: Long: Union Pacific (UNP) put options; Air Products (APD) put options; Nasdaq 100 (QQQQ) put options; FedEx (FDX) put options; Intuit (INTU) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA); Ion Media Networks (ION); Three Five Systems (TFS); IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Landstar (LSTR) put options; Ceradyne (CRDN) put options; Dell (DELL) put options; Plantronics (PLT) put options; [...] […] We also submitted a post to the Carnival of Investing at Lazymanandmoney and another to the Carnival of Personal Finance at A Penny Saved. The author may hold a position in the securities discussed. The author’s current holdings are as follows: Long: Union Pacific (UNP) put options; Air Products (APD) put options; Nasdaq 100 (QQQQ) put options; FedEx (FDX - Annual Report) put options; Intuit (INTU) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA - Annual Report; Ion Media Networks (ION); Three Five Systems (TFS); IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Landstar (LSTR - Annual Report) put options; Ceradyne (CRDN) put options; Dell (DELL) put options; Plantronics (PLT) put options; […]

]]> By: Carnival of Investing #53 | Carnival http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-8351 Carnival of Investing #53 | Carnival Mon, 18 Dec 2006 07:36:48 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-8351 [...] Stock Market Beat asks Is Dell Cooking the Books?. It’s interesting to note that author declares he is short Dell with some put options. [...] […] Stock Market Beat asks Is Dell Cooking the Books?. It’s interesting to note that author declares he is short Dell with some put options. […]

]]> By: Trent http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7344 Trent Tue, 05 Dec 2006 16:11:42 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7344 Bob, While we agree it is worthwhile to be skeptical of the numbers, it is probably more important to understand which areas management has discretion to adjust their estimates when needed and focus on those. After Andersen went under auditors are probably a bit more vigilant, and with the SEC under Sarbox, outright lying about the numbers is a good way to go to jail. As far as having faith in anything, the numbers seem a little more trustworthy to us than other potential sources such as management's comments, brokerage reports, the media and - yes - even pundits like ourselves. (We hope that the wheat will be separated from the chaff as some of us manage to earn some trust, but we also expect we will make mistakes from time to time.) Bob,

While we agree it is worthwhile to be skeptical of the numbers, it is probably more important to understand which areas management has discretion to adjust their estimates when needed and focus on those. After Andersen went under auditors are probably a bit more vigilant, and with the SEC under Sarbox, outright lying about the numbers is a good way to go to jail.

As far as having faith in anything, the numbers seem a little more trustworthy to us than other potential sources such as management’s comments, brokerage reports, the media and - yes - even pundits like ourselves. (We hope that the wheat will be separated from the chaff as some of us manage to earn some trust, but we also expect we will make mistakes from time to time.)

]]> By: Bob Campy http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7343 Bob Campy Tue, 05 Dec 2006 15:52:43 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7343 A CEO once told me that his company could control the price of it's stock. One of the ways he mentioned was over or under stating inventory. The auditors had no way of checking. This was back in the '70's. That is why I have little faith in corp. numbers. A CEO once told me that his company could control the price of it’s stock. One of the ways he mentioned was over or under stating inventory. The auditors had no way of checking. This was back in the ’70’s. That is why I have little faith in corp. numbers.

]]> By: Trent http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7340 Trent Tue, 05 Dec 2006 15:19:15 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7340 Mark, Thanks for the kind words. We also found parts of the CRN article somewhat slanted. However, the initial analysis by FBR was picked up by multiple publications. See also, for example, <a href="http://blogs.barrons.com/techtraderdaily/2006/12/01/dell-over-stating-profits-by-under-accuring-for-warranty-costs-fbr-analyst-says/">Barron's Tech Trader Daily</a>. PS - If anyone can forward a copy of the FBR report we would be interested to learn how their analysis differs. Mark,

Thanks for the kind words. We also found parts of the CRN article somewhat slanted. However, the initial analysis by FBR was picked up by multiple publications. See also, for example, Barron’s Tech Trader Daily.
PS - If anyone can forward a copy of the FBR report we would be interested to learn how their analysis differs.

]]> By: Trent http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7338 Trent Tue, 05 Dec 2006 15:06:15 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7338 Interesting... Seeking Alpha picks up this story and headlines it "Dell's Accounting Practices: No Cause For Concern" while TheStreet.com says "Stock Market Beat believes Dell is cooking the books." Guess you'd better read it carefully to see which is closest! (BTW: We appreciate both mentions as well as the associated traffic!) Interesting… Seeking Alpha picks up this story and headlines it “Dell’s Accounting Practices: No Cause For Concern” while TheStreet.com says “Stock Market Beat believes Dell is cooking the books.”

Guess you’d better read it carefully to see which is closest!

(BTW: We appreciate both mentions as well as the associated traffic!)

]]> By: Mark W. Porter http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7335 Mark W. Porter Tue, 05 Dec 2006 15:00:10 +0000 http://stockmarketbeat.com/blog1/2006/12/04/is-dell-cooking-the-books/#comment-7335 I think in reviewing an article on whether or not Dell is "cooking the books", one should consider the source that published it. I no longer subscribe to any of the CRN publications based on the fact that most of the articles in their publications are very slanted to the companies that advertise in the magazines, and biased against those who do not, or those who do not have a channel partner program that CRN approves of. Dell is a constant target of theirs, and therefore it is no surprise that they would publish a piece of work with those sorts of allegations. I commend you on doing a fair and unbiased analysis of the article and setting the record straight. Mark W. Porter Chief Executive Officer High Wire Networks, Inc. I think in reviewing an article on whether or not Dell is “cooking the books”, one should consider the source that published it. I no longer subscribe to any of the CRN publications based on the fact that most of the articles in their publications are very slanted to the companies that advertise in the magazines, and biased against those who do not, or those who do not have a channel partner program that CRN approves of. Dell is a constant target of theirs, and therefore it is no surprise that they would publish a piece of work with those sorts of allegations. I commend you on doing a fair and unbiased analysis of the article and setting the record straight.

Mark W. Porter
Chief Executive Officer
High Wire Networks, Inc.

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