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Technology Stocks : Agilent Technologies (A)
A 146.71-0.5%3:05 PM EST

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To: MileHigh who wrote (235)6/21/2000 11:00:00 PM
From: w0z   of 620
 
"You don't understand what amoritization of goodwill is and how it effects (it's affect...not effect) an income statement"

Sure...amortizing good will is writing off the excess paid over book value when acquiring a company...but eventually you have to show real earnings (unless of course you acquire more companies and have to repeat the process!).

Fast forward to the end of their next fiscal year (June 2001) and they are predicted to earn $0.62...and assume they double that for the next year...(I'm just guessing because the estimates I see only go out through 2001 and who knows what other acquisitions they may make requiring more goodwill writedowns!)

Assuming $1.24 ending June 2001...are you willing today to pay 100 times earnings that will not happen until 2 years from now in a very rapidly changing competitive business?

Good luck, I hope you sleep well and that JDSU's competitiors are asleep also!
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