[TriLUG] RedHat to restate earnings

[Michael Hrivnak]

Any time a company restates earnings because the SEC is asking questions, it's 
a red flag.  If they underreported earnings, the SEC probably wouldn't much 
care or notice.  But if the SEC thinks you aren't following the proper 
accounting rules and end up overstating your earnings, look out!

Of course anyone who didn't see this coming hasn't been paying attention.  
Their stock value has been skyrocketing, and that kind of accelerated growth 
isn't healthy or sustainable.  I seem to recall that Redhat has been in the 
position of experiencing unhealthy growth in the past....

On the upside, this seems like a relatively minor accounting issue.  More in 
question now are management issues.  Right in the middle of this, the CFO 
resigned.  Hmm...

Just my $.02

Michael

On Tuesday 13 July 2004 04:06 pm, james.yu at katakiri.com wrote:
> http://biz.yahoo.com/rb/040713/tech_redhat_3.html
>
> Opportunity?  Or red flag?