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Tuesday, January 13, 2009

Madoff Associate Misses Mass. Agency Hearing

Associated Press

BOSTON--An associate of accused Ponzi mastermind Bernard Madoff has failed to appear before the Massachusetts Securities Division despite being issued a subpoena.

Officials want to learn more about what Robert Jaffe might have known about Madoff's alleged $50 billion scheme and how it affected Massachusetts investors.

Jaffe, who keeps homes in Weston and Palm Beach, Fla., worked for a firm that helped steer clients to Madoff. Jaffe has said he was unaware of the scheme and said he and his families were victims.

A spokesman for Secretary of State William Galvin said he didn't know why Jaffe failed to appear Tuesday. The division is deciding its next step.

A call to Jaffe's home wasn't immediately returned Tuesday.

Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.

So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.

Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.