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Author: kprigel Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 44599  
Subject: TNSI Date: 8/13/1998 2:56 PM
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I wanted to poll the rest of the short selling community to see what everyone thought of TNSI. They got a CFRA alert this month, which means there are accounting discrepencies that could lead to a substantial fall in stock price.

Specifically, TNSI has been loaning money to customers in exchange for the customers agreement to purchase a particular amount of goods or services. They then book this as a long-term investment, instead of accounts receivables. Secondly, they reclassified receivables as a long-term investment, then recounted the repayment of that "investment" as revenue.

Over the past 2 quarters, receivables (not counting their "long-term investments") have surged, with days sales outstanding going from a consistent 55 days to 62 days in Q1 and 65 days in Q2.

Lastly, there has been a big jump in "Soft" assets, which usually indicates a low quality of earnings.

Any thoughts?


Kevin Prigel
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