Micron Only Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum

MU 252.10

+2.1%

1:53 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Skeeter Bug who wrote (39415)	9/30/1998 2:41:00 PM
From: Ed Beers	Read Replies (2) of 53903

> ed, please explain this. i'm all ears. i depreciate my rental and it has never generated a dime for me. it has allowed me to pay fewer taxes. that is not positive cash flow. it is fewer expense. $1 billion times your tax rate is what it returns - when you make money. < Your rental should be a fine example. Assume you have a paid for house. Assume you get $20000 per year of rent Assume you depreciate the house at $20000 per year At the end of the year you will have $20000 cash in hand but your house is worth $20000 less (thats why we depreciated it) so you broke even and had $20000 of positive cash flow. Now borrow $10000 and spend $30000 putting an addition on your house and you have a business just like MU. Perhaps you are confusing positive cash flow with making money. You can make money while having a negative cash flow (common when you are expanding) or lose money with a positive cash flow. Ed

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next