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Technology Stocks : APAC Teleservices

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To: Tensane 1 who wrote (146)9/5/1997 11:32:00 AM
From: COWPOKE   of 231
 
Kevin, I would guess that the 'GOODWILL' in TLSP's book value is
a reflection of how they allocated the assets of the companies they
bought at the time of merger. It's my understanding that when one
company buys another, they are after instant market share (goodwill)
and capacity (hard assets). Some people don't allocate a lot of value
to goodwill, but if you want a competitor's market share, you have to
pay for it. It makes good business sense to pay for market share, as
it's the fast-track to growth. It is often times more cost effective to
buy instant sales rather than going thru the tedious process of ramping
up new equipment, recruiting and training new people,etc. If this makes
sense, the goodwill they have booked is a value added component
of their stock price. As to incoming vs outgoing, I would think a
telemarketer would want to be in a position to offer both in order to
attract new business.

Good Luck!!!
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