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Microcap & Penny Stocks : American International Industries Inc. OTC BB Symbol EDII
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To: Auricman who wrote (3831)12/6/1998 6:55:00 PM
From: jmt  Read Replies (1) of 4814
 
Acquisitions and the evaluations of properties. I thought that is why EDII hired one of the top auditors to audit their financials??

They can recommend an "accounting" value for the net assets, but thats the end of it. What Dror paid for the properties is his discretion. And if a significant amount of goodwill was purchased (price paid in excess of fair market value of assets), and if it is later determined the price was excessive (like during a subsequent audit), questions could arise concerning "writing down" the asset, reducing the book value of the company. One of EDII's claims have been each acquisition increased book value. That is one of the flaws with the purchase method of accounting for an acquisition. Any exhorbitant amount paid over fair market value increases book value, which is not necessarily a good thing.

And if EDII has submitted all the paperwork to the auditors, the delay must be for more fundamental reasons such as disclosure or valuations.

IMHO

jmt
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