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Such accurate insight, Bob.
Reminds me of out-of-college accountants interviewing for the same job.
In response to the question, "How much is 2 + 2", the first two candidates
were thanked for coming in and dismissed.
The third candidate answered, "How much do you want it to be?"
Guess who got hired.
Hint to all you "Fibo" fans. Try using Fibo numbers for your indicators,
rather than just using Fibo numbers / ratios for reaction levels.
You may find much more profitable, "Zen-ish" results by letting the market
tell YOU what to do, rather than YOU trying to tell the market ("21 is a
'Fibo' number - prices just 'have to' end there") what to do.
Just a suggestion..........
----- Original Message -----
From: "Bob Fulks" <bfulks@xxxxxxxxxxxx>
To: "Mike Higgs" <moongateca@xxxxxxxx>
Cc: "Gene Pope" <gene@xxxxxxxxxxxxx>; <omega-list@xxxxxxxxxx>
Sent: Thursday, September 27, 2001 9:46 AM
Subject: Re: More On Fibonacci
> At 11:53 PM -0400 9/26/01, Mike Higgs wrote:
>
> >It's earnings, earnings, earnings.
>
> ... which are manipulated, manipulated, manipulated.
>
> In a business course once, the head of a major auditing firm was a
> guest speaker. He told us that Professor X had taught us this and
> Professor Y had taught us that and now he was going to tell us how it
> REALLY worked.
>
> He created the "hypothetical" situation where the head auditor meets
> with the Chairman of XYZ SuperCorporation and the Chairman "suggests"
> that he would like to show 47 cents a share for this quarter. Are you
> going to tell him that such a number is impossible and probably lose
> a major client? Not likely.
>
> So you go to work and recalculate everything every possible way to
> see how you might achieve 47 cents a share, within the rules of
> Generally Accepted Accounting Principles, of course. There is
> tremendous flexibility often resulting in a two-to-one range of
> acceptable profits.
>
> Then, sometime within the next few quarters there is some so-called
> "non-recurring event" on which you can blame all sorts of stuff.
> Then you write off all the questionable assets (and a lot of good
> ones, too) so that you can show great profits in the future.
>
> It would not be a great exaggeration to say that, "Any similarity
> between reported quarterly earnings and real earnings is purely
> coincidental..."
>
> Bob Fulks
>
>
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