ptanner:
"Does a stock investor really consider goodwill to be an asset with value? Sure, it can be used for tax benefits (?) through amortization or write offs. While goodwill may reflect paying too much for a company this transaction is already complete. What am I missing? This subject is getting a little old - particularly on the AMD thread."
Were INTC to eliminate goodwill from its balance sheet, S/E would be reduced by close to $5 billion from $35.8 billion to $31 billion...An S/E decline of this magnitude would have significant implications for INTC price given that many analysts watch S/E very closely...In INTC's case, were the goodwill to disappear from the balance sheet, restated INTC S/E would show a decline of $7 billion since the FY00 close...That would compare with an AMD increase of $4.5 billion in the same period...(It may be stale, but it is far from unimportant to consider this "restated" divergence in S/E...It is as glaring an example of two companies headed in opposite directions as I can provide, at this time...The arrival of Hammer will, undoubtedly, drive this point home to those who care to shrug off "due dilgence" and continue to accept, unquestionably, the $0.14 announced by INTC today!!!
(As Dan3 and DRBES have intimated, INTC keeps posting a positive eps, yet S/E at best has declibned by almost $2 billion in the past year, and depending how much goodwill is impaired, by as much as $7 billion if goodwill is written off!!!) Stale maybe, but not a pretty sight, imo!!! |
