Veritas (VRTS) Message Board

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Technology Stocks : Veritas (VRTS)

VRTS 165.54

+0.5%

3:59 PM EST

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To: Mark K. who wrote (237)	10/8/1998 3:22:00 AM
From: The ChrisMeister	Read Replies (1) of 742

"Will investors back out the goodwill charges? . . . Should it be backed out?" I'm not even sure if I understand these accounting technicalities. In fact, I'm sure I don't. I'm pretty much a TA guy, but I hope someone answers your questions on these issues which relate to the fundamentals. From another post (news item): "Why won't the deal fall apart? First -- now don't snicker -- because the two companies say so." This is exactly how the Tellabs/Ciena deal went at first. Lots of verbiage to the effect of "staying the course", "being committed to the deal going through", etc. There were even the same huge charges for backing out of the marriage, but when it looked like neither group of shareholders would approve the deal these disappeared. TLAB's stock is still flat on its back, contrary to common-sense reasoning that once the bad deal was called off it would bounce back up to where it had been. Certainly it's a very different situation from this one, but there are some parallels IMO. If VRTS and SEG called the thing off tomorrow, would we bounce back up 15 or 20 pts? Seriously doubt it. The damage has been done and there's not a lot anyone can do about it. ChrisMeister

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