Applied Magnetics Corp Message Board

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Technology Stocks : Applied Magnetics Corp

APM 1.560

+15.6%

Nov 18 3:59 PM EST

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To: Helios who wrote (11035)	12/17/1997 1:23:00 AM
From: Jonathan Bird	Read Replies (1) of 12298

Will companies that have property in Asia be forced to recalculate the value of the property based on currency exchange rates or will they carry the inflated values? Helios, They will carry the inflated values and only realize the loss as an operating expense when they sell the asset(property/equipment) for below what the previously expected salvage value was. There is nothing to prevent them from realizing the loss sooner or accelerating the depreciation schedule to reflect the new salvage value. But for currency fluctuations it would be unusual. It brings up an interesting angle on the book value I hadn't considered. If the company was an aquisition target or in danger of being forced to liquidate assets then it would be a consideration. But otherwise I think its too esoteric for the average investor to take into account. I might be wrong though. Certainly I wouldn't have thought of it. What is your position in APM right now? Jon Bird

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