PeopleShell
from the watch-the-tricky-accounting-at-work dept
Here’s a fun one if you’re looking for ways in which companies hide money. PeopleSoft has been using a shell company to hide the costs of developing their latest software suite. The company has only one employee, but still ate up $250 million of the cost of building PeopleSoft 8. It’s basically a way to hide the costs, so that PeopleSoft’s profit looks better. Yet another reminder to never trust accounting statements unless you really know what’s going on.
Comments on “PeopleShell”
I wonder...
If they’ll go down the shitter like enron (who’s accounting firm used shell companies to hind the actual situation from stockholders).
At the moment they’re completely overvalued at ~$40
not very impressive for a company attempting to bill themselves with SAP, Oracle and other *real* heavy hitters.
Re: I wonder...
no one needs this overpriced software in a recession. these firms are WAY overbloated. i just hope they made smart liscening deals, b/c NEW imstallations of this stuff will plummet. just see fate of big6 firms, massive drops , and cutbacks. this is what they specialize in, ,,big giant overpriced overblown, high risk projects…..goodbye…bull economy is over.