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Technology Stocks : Lucent Technologies (LU)
LU 2.560-1.7%3:59 PM EST

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To: Claude Edelson who wrote (4132)9/16/1998 3:52:00 AM
From: Sr K  Read Replies (1) of 21876
 
Stupidist financial argument of the week:

<<By SETH SCHIESEL and LAURA M. HOLSON:
For example, General Electric and Microsoft have comparable market values of about $250 billion, but very different book values: $304 billion versus only $14 billion, respectively. So buying G.E. would not entail writing off any goodwill, but buying Microsoft would mean writing off nearly the whole purchase price. >>

Assets do not equal book value! GE had $35.5 b book value (half intangibles) at 6/30/1998 while MSFT had $12 b. How can anyone with any knowledge in this area write that GE is selling for 82% of book value?

Where was this published?
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