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Strategies & Market Trends : Value Investing

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To: Brendan W who wrote (12614)6/7/2001 6:42:10 PM
From: Crossy  Read Replies (2) of 78751
 
re: goodwill amortization

Brendan,
goodwill amortization is ALWAYS a noncash expense. When the SEC (foolishly IMHO) closed the door for "pooling of interest" type of takeovers the problem with the goodwill amortization crept in. As a believer in industrial accounting over financial accounting I usually prefer EBITDA figures and reduce that by the I part (Interest). You get a quasi-earnings before taxes figure that excludes all those effects that I consider "artificial"

best wishes
CROSSY
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