Just like you never want to hear a doctor say "oops" in the operating room, you never want to see a going-concern statement in a financial report about a company you own. Accountants throw these in when they've been over the books, talked to customers, and checked the horoscopes and have concluded there is "substantial doubt" about a company's ability to remain in business. In short, don't blame the accountants if the company files for bankruptcy protection.

You¿d reckon that a going-concern statement would be enough to send investors running to the exits, but it's not. True, many large institutions automatically bail when an existing company gets slapped with one of these, but many individuals (often wrongly) take a chance they know more than the bean counters.

During the tech boom of the late 1990s, many companies actually went public even though they had been hit with going-concern statements. Many of those companies subsequently disappeared. Enough said.

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Friday, November 02, 2007

Not Sure What To Wear? Ask The Mirror

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Kathryn Elizabeth Tuggle

FOXBusiness

New York --Mirror, Mirror, on the wall -- what goes with these pants?

The Magicmirror, which could hit U.S. stores by the end of 2007, is a digital mirror developed by thebigspace and Infosys Technologies (INFY) that interacts with shoppers while they try things on. A bit futuristic (and maybe a bit invasive) the mirror uses radio-frequency identification, or RFID, tag technology to sense the garments shoppers take into the dressing room. The mirror then displays a T.V.-like description of the clothing and offers shoppers everything from related advertisements to suggestions on matching shoes.

Via touch-screen technology, shoppers can tell the Magicmirror if they need another size or color in a garment, and a sales associate is notified via PDA.

“Most times, the first time the retailer can approach you is at the check out at the end of your shopping experience,” said Devon Ferreira, a principal with Infosys. “There is a better opportunity for retailers to make a sale if they can come to your dressing room to bring you what you’ve asked for.”

Ferreira said the mirror’s developers -- Infosys and thebigspace -- are already in discussion with five of the “marquee brands” in North America, and that department store installations are expected before Christmas 2007.

As far as the clothing that will interact with the mirror, Ferreira said initially the items will be promotional or part of special collections. However, as more retailers adopt the use of RFID tags, the Magicmirror will become more of a dressing room companion to all clothing- aside from socks and underpants. “There’s not a lot we can do with that,” said Ferreira.