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Gold/Mining/Energy : GEAC.....Canadian best kept secret
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To: Fun-da-Mental#1 who wrote (812)7/13/1999 7:45:00 PM
From: PlayTheKing  Read Replies (1) of 1571
 
<Earnings report: good revenue growth but huge loss due to writedowns>

Write-down is like I said...new blood taking a bath!! I have never been a fan of the capitalization of intangibles or other assets. It is a "nothing number" that is merely meant to spread the costs over several years as required by the CICA Handbook. Goodwill and intangibles are generally written-off over a maximum of 40 years. Aggressive companies that want to reflect high profits will elect for 40 years...if possible. They will have a tough fight with the auditors over that!!

I generally like to see management being more conservative and writing costs off over not more than 5 years. Nothing last that long in this day and age, and espcially not in GAC's industry.

Good move to start with a clean slate IMO.

<time to bail out?>

It depends what your investment time horizon is: Short-term...yes
Long-term...NO!!

New CEO, new CFO, new VISION. I believe that the new management team is just beginning to realize the potential of this company and will take between 9-12 months to develop a sound business plan for the new millenium. With revenues approaching the $1 B mark, GAC must be doing something right.

Bergeron did not leave Sunguard to just run a mediocre firm. He came to bring new energy and a fresh perspective to this company. Bergeron publicly stated that this company will approach $10 B in revenues!!

I am a believer as he has demonstrated his ability down south already.

Remember...Rome was not built in one day!!

PlayTheKing

I am long...
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