Re: [Leica] Leica's Stock Price....Hey Sal, read this

[Dominique.Pellissier@droit-eco.univ-nancy2.fr (Dominique PELLISSIER)]

>
>From: "Sal DiMarco,Jr." <sdmp007@pressroom.com>
>
>Luggers,
>    Yesterday there was a posting about the Leica stock proice being
>at 8
>Euros and if it drops to look for management changes.
>    Well, Leica stock price has been around 8 Euros for the past six
>months.
>    An unnamed source at Leica told me, their fiscal year is ending
>3/31/00
>and they expect to reach or excede their sales and profit
>expectations.
>    In other words all is going well.
>    If you want to play reporter, please get your fact correct.
>Happy Snaps,
>Sal DiMarco, Jr.
>- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
>
>Hi Sal,
>
>Well, there you go again.  Let us take a minute and see just who has
>their facts correct and who does not:-)
>
>Click on the link below and take a look at Leica's stock chart.  The
>range over the "past 6 months"  has been form 7.10 Euros to 10.10
>Euros.  That's a 42% price differential...and now exactly what You
>would call "around 8".
>
>http://bank24.multichart.de/cgi-bin/cgichart?type=5&infotmpl=../satchart/te
mplates/infotmpl.htm&tabtmpl=../satchart/templates/tabtmpl.htm&dsatz=2860&so
rt=1&
>
>
>Now, about Leica reaching their "profit expectations".  Leica is not
>making a profit. Period.  If you read the third quarter financial
>statement you will see that Leica Camera, AG lost almost 10% of it's
>net asset value in that quarter.  That is not what I call making a
>profit.
>
>Hey Sal, I have a deal for you.  You teach me how to be a great
>photographer, and I will teach you how to be a great stock picker.
>
>Regards,
>
>Bill
>
##################

Leica camera is slowly recovering from a strong negative shock.

The profit after tax is now positive : 4.77 millions DEM (3rd quarter)

with a positive operating result of 6.9.And the sales are increasing (+9.9 %).
Good news for the future.

You write : "If you read the third quarter financial
>statement you will see that Leica Camera, AG lost almost 10% of it's
>net asset value in that quarter.  That is not what I call making a
>profit."

You're wrong.

They wrote :

"With total assets of DM 195.6 million the Company registers a reduction of
9.2% in comparison with the amount of the prior year. The reason for this is
in particular the reduction of accounts receivable by 14.4%, resulting from
improved accounts receivable management."

Profit is NOT total assets !

But you can say that profit is not a time consistent goal because you can
make profit one year (window dressing) and losses after a take-over(widow
dressing).
It's possible that positive profit depends upon choice of an accounting method.

I think it's not the case for Leica but...



M. Dominique Pellissier
Maître de conférences en économie
Université de Nancy2
13, place Carnot
C.O. n°26
F-54035 Nancy cedex
France

phone : 0383261702
mobile : 0612240885
fax :0383192601