SI
SI
discoversearch

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.
Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: marginmike who wrote (5359)11/29/2000 11:07:57 PM
From: marketing1  Read Replies (1) of 19219
 
question re affect of investment losses on earnings report

I noticed unfortunate news today re ChipPac (QCOM investment) , LHSP (MSFT investment), and MOT’s write offs due to bad investments.
dailynews.yahoo.com

Seems to me that I remember that there are numerous well recognized leading type companies other than the above that regularly invest in other tech companies and have been including gains made from investments in their quarterly earning reports. Please feel free to correct/refine my somewhat hazy recollections.

Seems to me I heard some disagreements about the fairness of this accounting method. Some companies include these gains; some do not.

This has worked out well in the bull market when these investments added a few pennies to the bottom line which contributed to better Qtr to Qtr comparisons etc, BUT

WITH SOME OF THE MORE SPECULATIVE TYPE COMPANIES CRASHING AND BURNING LEFT AND RIGHT . . . Hmmn. This could be another problem.

I wonder how to anticipate the extent of the effect that this practice might have on earning seasons in the near future? Which companies will be the most vulnerable? When/How do they decide to “write off” bad investments vs include good ones? What are the rules in this matter? How does one become better informed? Got any ideas? TIA

marketing@unfortunatelyIjustboughtthisdiptoo.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext