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Strategies & Market Trends : Value Investing

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To: Difco who wrote (44951)	10/13/2011 8:30:26 AM
From: Area51	Read Replies (1) of 78742

As long as cash minus all (actual) liabilities is positive it seems to me that it is a net-net (but as Clinton says it probably all depends on what your definition of "is" is?). They explained the gaap difference in the link as follows: An important point is that if you look at their GAAP numbers it looks NOTHING like this, it looks like they have a -$1B net worth. They show up in quant screens and online news alerts under headings like “the worst debt to assets ratio of any consumer finance company” because of this. They were forced to consolidate the student loan trusts that they securitized previously ($9B roughly) which due to the recession/high unemployment are being marked at a $1B+ paper loss currently. This has no recourse whatsoever to them and is due to excessively strict consolidation rules that were adopted after all the off-balance-

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