VISIO Corp (VSIO): Big ISO 9000 Play Message Board

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Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play

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To: Dan Spillane who wrote (242)	11/1/1998 9:19:00 PM
From: Grommit	Read Replies (2) of 522

After all, if we are going to value companies based on speculation about future tax rates, we might as well NOT pull a tax rate number out of a hat like you have done. I did not pull a tax rate out of a hat (check the tax rate of any other profitable company) and by discussion of possible legislated tax changes you are missing the point. VSIO's tax rate is abnormally low at 26%. It will not stay there forever. I do not know why VSIO's tax rate is low. (In looking briefly at the SEC documents, they certainly do not bring attention to the matter.) I bet it is NOLs from acquired companies. If for some reason they are blessed by the tax gods with a low tax rate forever, I will stand corrected. "The Company's effective income tax rate was 26% for both the fiscal 1998 and fiscal 1997 periods." And you have found out it will also be low for 1999 and for "for Visio in the forseeable future". That is a pretty powerful statement and you are wrong. Suggest you ask VSIO why their tax rate is so low. And ask them how long it will last until they burn thru the tax credits.

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