Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Site Notices
10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 9/15/2005 5:12:45 PM EDT
S&W Holding corp. said first quarter profit rose 83%, BOOSTED BY A 1.9 MILLION BENIFIT BECAUSE IT REDUCED THE AMOUNT SET ASIDE FOR AN ENVIROMENTAL CLEANUP. The company expects revenue this year to grow 10% to 12% as it sells more guns to police forces and the military.-(no linkie,local Ma paper).FWIW...I like my S&W's and Taurus brand revolvers.
Link Posted: 9/16/2005 9:54:17 AM EDT
Ummmm lemme get this right.

S&W boosted profit by 83%. This is, at first glance, a good thing.

However, that 83% profit was boosted by a reduction in a set aside. This is supposed to be good news???

Hey, if profits are up 83% because sales were up by 30%, or because S&W had managed to control costs, or because market conditions were favorable to increased margins, these are all good things. However, if profit is up because of some accounting manoveurs, it is nothing to get excited about.

This situation is kind of like claiming "my take home pay was up by 83%, boosted by the amount of money I should have spent on my car insurance but didn't"....

What the "company expects" is usually horseshit............... If I'm selling stock, I wanna make it look good. Hey, I'm expecting this stock to appreciate! If I tell you its a frikking dog that is going nowhere but down, you wont buy..

Yah. I like S&W products too. But this little profit scam means squat. When they report that profits are up 83% because of new products and increase government contracts, lemme know..
Link Posted: 9/17/2005 9:04:59 AM EDT
YES!.....its just them 'playing' with the numbers. LIKE ENRON Just a ploy to get attention.
Link Posted: 9/28/2005 10:23:02 AM EDT
The problem is that S&W may need that "set aside," money for eviro cleanup. Enviromental cleanup can be very expensive. These one-time expenses and income don't impress me at all. In this case, just another accounting gimmick.
Link Posted: 9/28/2005 3:08:25 PM EDT
agree w/frozenny. If it were due to operational improvements, it would be a good thing. One-time improvements don't do anything for me or for Wall Street analysts.
Top Top