Bill Parish, a respected Investment Management and Researcher is authoring a book on some of the business practices of Microsoft. His page makes an interesting read. Here’s some snippets:
This situation is not about stock valuation, product quality or whether or not Microsoft has monopoly power in its markets. Nor is it part of a pro or anti-Microsoft movement. This situation is instead a shining example of financial fraud and corruption enabled by bad government policy. If not quickly and aggressively addressed, we will all be losers as credibility in our financial markets is destroyed.
Earnings Management: The first and most important tool Microsoft uses is the manipulation of earnings to ensure analysts’ expectations are met. According to an ABC News 1/22/99 article by Michael Martinez, Microsoft’s own internal auditor, a respected 30 year veteran and former partner of Deloitte and Touche, was fired in 1996 after informing management that their earnings manipulations were illegal and violations of the SEC and FASB laws. He was given the option to resign or be fired and later settled for $4 million after suing under the Federal Whistle Blowers Act. Read more.
Windows Vista Refunds!
