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Technology Stocks : Network Associates (NET)
NET 196.02-0.6%Jan 2 9:30 AM EST

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To: AlienTech who wrote (3381)10/19/1998 5:58:00 PM
From: Chuzzlewit   of 6021
 
I think you are reading the numbers incorrectly. I think you are looking at the total of liabilities and S/H equity.

But by way of general information, book value can increase while profits decrease. How? By selling stock. Stock transactions are not part of the income statement (which is why I am so critical of options as a method of payment for wages and bonuses). When you sell common stock two equity accounts will increase: common stock (which is the par value of the stock) and paid in excess (which reflects the difference between the par value and the selling price of the stock). Now in point of fact, NETA did sell $117,305,000 in stock during the period.

TTFN,
CTC
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