LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Gets a Boost of Rocket Fuel From Negative Bond Yields
By: Frank Holmes, US Funds

The Gold (and Silver) Volcano Is Ready to Erupt
By: David H. Smith

Precious Metals Update Video: Where do you park money? Stock markets and hard assets
By: Ira Epstein

Recognition and Adjustment
By: Craig Hemke

After This Confirmation Gold Prices Will Rise Fast
By: Hubert Moolman

Will Silver Soon Follow Goldís Lead?
By: Stefan Gleason

GoldSeek Radio: Dr. Chris Martenson & Bob Hoye
By: Chris Waltzek Ph.D., GoldSeek Radio

Goldís Century
By: Michael J. Kosares, USA Gold

What Gets Measures Gets Improved
By: Keith Weiner, Monetary Metals

SWOT Analysis: Central Banks Continue to Show Their Love for Gold
By: Frank Holmes, US Funds

 
Search

GoldSeek Web

 
Lyft, Uber IPO Deals Flunk the Smell Test

By: Rick Ackerman, Rick's Picks

 -- Published: Tuesday, 30 April 2019 | Print  | Disqus 

"Investors" could be pardoned for wondering why IPO underwriters for Lyft and Uber have used accounting trickery that smells worse than ten-day-old fish in order to promote the deals. Is bogus too strong a word? Judge for yourself. In their prospectuses, neither firm subtracted promotional incentives and refunds from sales totals, as is customary. This allowed them to grossly overstate revenues and profits. In Lyftís case, revenues would have been 16% lower than the $2.16 billion reported and Uberís would have been 12% lower than the $11.27 billion reported. These numbers were aired in a Wall Street Journal op-ed piece Monday by Howard Schilit, co-author of Financial Shenanigans.

Passengers Donít Count

What adds to the stench is that in order to use these accounting gimmicks, the ride-hailing companies had to categorize their drivers as customers. Passengers seem not to matter: ďBecause end-users access our platform for free and we have no performance obligation to [them], [they] are not our customers,Ē Uberís SEC disclosure filing notes without a trace of irony.  This doublespeak would be laugh-aloud-funny if not for fact that similar chicanery is undoubtedly a key ingredient in keeping the ten-year-old bull market going.

Schilit exposes the accounting ruse for exactly what it is by asking this question: Who would Uber/Lyft consider the customer in a self-driving car? Itís a question that most of the bozos clamoring for Lyft shares, and Uberís when it goes public, are evidently not taking too seriously. 

Click here for a free two-week trial subscription that will give you access to all paid features and services of Rickís Picks, including daily, actionable trading recommendations and a ringside seat in a 24/7 chat room that draws veteran traders from around the world.


| Digg This Article
 -- Published: Tuesday, 30 April 2019 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.