Rob, my calcualtions are looking at the last quarter, which has been their strongest. My ROE number is solely based on the recent 10Q.
I agree, averaging the numbers would be a good idea. However, I thought since the last Q was so strong, it would be fine to just use the last quarter. Also, I was interested in where they are now, rather than the average for the last few quarters or so.
To do it right, I suppose it would be good to calculate the numbers both ways.
Regarding the equity per share. I agree. It would be more conservative to back out goodwill. I did mention that, perhaps in the Motley Fool. Now, if you were certain that goodwill was actually worth $ X, (like McDonald's goodwill), then I'd keep it in. I only gave that number so it would be easier to see where I was coming from.
Good point about the debentures. I read the terms, but I have not really dug into them. Many expire around 2002 to 2005. Some are at 85% of the value at conversion. I'm not sure if they can convert earlier or at what prices they could convert. I believe some of the recent issues were converted recently so my guess is that at least some can be converted sooner (or maybe it was the warrants that were being converted).
You are right though. I should find out about the coversion rights of the debentures, etc. I'll ask the CFO about them, too. |
