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Strategies & Market Trends : Don't Drink the Kool-Aid Kids

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To: Stoctrash who wrote (1021)1/15/2002 6:51:59 AM
From: AugustWest   of 1063
 
Clowns to the left, jokers to the right....

Wouldn't it be beautiful if companies like CSCO could reduce a proportionate # of shares to reflect the size of the writeoff? Say CSCO made a $60 billion write off to reduce goodwill against the pooling of interests they generate. Why not let them automatically retire 3 billion shares of stock at $20. It would help generate higher EPS's for current shareholders to reflect the reduction in discounted cash flow of non performing assets.

The tech wreck is over now that the companies have been allowed to write off 50 years of non performance in a single quarter. It was in everyone's interest to let them write off the goodwill - the alternative was to watch a 10 year drought of corporate profits as companies generated billions of revenues and charged it back against their goodwill.

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