No. of Recommendations: 2
In a simpler time, this would have been called fraud.
Nothing new under the sun department. Back when every utility company wanted to be Enron, there was lots of round trip trading going on. CMS Energy, here in Michigan, was round tripping with Reliance, selling blocks of energy back and forth, over and over. Management crowed about how revenues were soaring. Don't look at the stagnant profits, management said "look at the growth in revenue". Broadband network operators were selling IRUs back and forth: each carrier buys capacity on the other's network. Each books the sale as current revenue, but capitalizes the cost of the purchases so it is depreciated over a number of years, they management points a finger at the soaring profits.
Steve....Ponzies R us
