IBM Kyndryl as "Aggressive “Enron” Accounting"
IBM Kyndryl continues to nosedive today:
IBM investors might gradually come to realise that the issue isn't contained; Kyndryl is part of IBM's means of hiding its problems, as someone has just explained:
Kyndryl looks to be a case of aggressive “enron” accounting. I guess that’s what happens when you put an ex CFO in charge. There are a couple of interesting observations here.
- The head lawyer and cfo have left the building. NET NET folks are going to go to jail and financial restatements are in Kyndryl’s future
- Every services company is caught up in this downturn (accenture, cognizant, tata, wipro, etc etc). That implies everyone has been operating under aggressive accounting rules and may face some accounting restatements. Certainly every financial auditing company is working overtime looking at their books.
- Given that 7 years have past between Schroeder leaving and kavanaguh taking over, the issue of cooking the books at IBM for GTS services seems to be overstated. Will the auditors looks at IBM’s books harder? Absolutely, but is a restatement in IBM’s future? Most likely not. IBM moved away from GTS engagements for exactly this reason (they couldn’t be profitable without cooking the books) THUS the spinoff.
- Is IBM cooking the consulting books? Again most likely not given the scrutiny of consultings utilization and margins on any given earnings call. They are under a microscope when it comes to consulting, and it looks like they have driven “consulting”concerns via buying SW companies that encourage consulting engagements.
But "come on," someone said later, "we all know they play fast and loose with results. I just don’t think people are looking hard enough or just assumes someone else is" (with necessary skills and platform to speak about what's found).
IBM's "CEO and the entire executive board need to step down immediately," somebody wrote less than an hour ago.
Because IBM isn't fine, it's collapsing rapidly while faking performance and hiding its mass layoffs. █
9 hours ago:
