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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: MikeM54321 who wrote (11015)4/17/2001 7:08:12 PM
From: EJhonsa  Read Replies (1) of 12823
 
Are you saying capex never effects net income?

Other than by means of potentially bringing down a company's interest income (which does count towards net income) via the depletion of its cash reserves - yes. It's just one more reason why investors should do more than merely look at a the pro forma earnings numbers that Wall Street and the media love to harp on. This is all more so the case when you're dealing with companies that operate businesses that are both highly capital-intensive, and are prone to seeing the value of their existing capex-related investments depreciate rapidly - a description that fits just about any telecom service provider in existence.

Eric
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