Wait, where can I readily buy $500 Disney gift cards for $395?
I was thinking the same thingWait, where can I readily buy $500 Disney gift cards for $395?
I agree that she has some credibility issues but we've also seen too many Corporate Audit teams be "duped" or in on the fix. And Big 4 external auditors are paid for by who? Plenty of companies have overstated the revenue or got caught manipulating their books...Enron. ComCast. Meryl Lynch. Bear Stearns. QWest. Tyco. and WorldCom are just a few that were BIG companies that got caught. We also have the new whistle-blower complaint to the SEC regarding GE's accounting practices. Another legacy company being questioned for their accounting. I think, especially in terms of legacy companies, the public's first instinct is to rely on their reputation and have more faith in the company and their accounting than they might warrant. It's the other reason, whether or not this whistle-blower is correct, why so many people would be hesitant to file such a claim against such a public and well loved company. Despite the possible payout she would be entitled too, the public would most likely not be on her side, and either way will be an uphill battle. It's also interesting that the SEC didn't entirely dismiss this claim to begin with.There are definitely some holes in her story. Do I believe you can overstate some revenue and and possibly skirt some accounting system controls? Absolutely. But as someone who sets up system controls for a living, you'd need a LOT of people to be in on this scam and also would have to dupe your Corporate Audit team and your Big 4 external auditor (in this case PwC). You are talking massive collusion here by hundreds of people. And only 1 person is speaking up?
She also claimed that park revenues overstated by $6 billion in a $10 billion year. No way you are overstating by more than 50% if you are just doing this from room allocations on taxes and gift cards. She also only brought these concerns to management a handful of times over almost 10 years? Conveniently only reporting it to the SEC after she was fired. Definitely some suspicious activity on both ends.
Another legacy company being questioned for their accounting. I think, especially in terms of legacy companies, the public's first instinct is to rely on their reputation and have more faith in the company and their accounting than they might warrant. It's the other reason, whether or not this whistle-blower is correct, why so many people would be hesitant to file such a claim against such a public and well loved company. Despite the possible payout she would be entitled too, the public would most likely not be on her side, and either way will be an uphill battle. It's also interesting that the SEC didn't entirely dismiss this claim to begin with.
First, a financial analyst is not an accountant.
Just buy more on the dipOh sure! Now that I bought more Disney shares last week.