TOP DRAWER SATIRE
Holes in the Financials
by
HL Carpenter
A Securities and Exchange Commission (SEC) investigation into the well-oiled world of doughnut makers has turned up some half-baked financial practices.
“These firms appear to be sugarcoating the accounting for doughnut holes,” says a person familiar with the informal inquiry. “There’s concern about visibility into the center of their operations.”
Industry watchers say the companies found themselves in hot coffee after a recently issued a ‘fry warning’. Specific to the doughnut business, fry warnings are notifications to investors that the stock price is about to be burned.
“Doughnut makers have long been considered a sweet stock,” says one analyst. “But the Atkins craze is stealing their powder.”
A spokesperson for the International Doughnut Consortium insists the whole issue has risen to a level that’s way out of proportion to reality. “Our financials are as clean as our kitchens,” she says. “But we’re sending the SEC whatever samples they request. We’re always happy to serve law enforcement.”
Originally published August 2004.
***
HL Carpenter, an experienced investor and a CPA, specializes in reader friendly financial and tax topics for individuals and small businesses, and publishes Top Drawer Ink, a newsletter that's chock full of humor and common sense information.
***
Last update: January 9, 2011
Like what you're reading? Subscribe here:
Top Drawer Ink is a free newsletter. After you complete the opt-in process, a new issue will arrive twice each month, direct from our email box to yours.
Subscribe via RSS feed
Top Drawer InkWhat's RSS? Click here