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Technology Stocks : AUTOHOME, Inc
ATHM 23.95+0.6%3:59 PM EST
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To: Boplicity who wrote (4407)1/18/1999 9:58:00 PM
From: ftth  Read Replies (1) of 29970
 
I can't find any official reference to check the facts. But, assume it's real; if they can use pooling, the assets, liabilities, and equity are shown at book value, so no goodwill is created and future earnings aren't reduced by the amortized goodwill. One condition required for use of pooling-of-interest is they must issue voting common shares in exchange for at least 90% of the voting common shares of XCIT in a single transaction.

The purchase method has dilutive earnings implications (amortized goodwill). The big question as always is how much this bundling of increasing net losses and millions in LT debt increases the risk of financial distress to shareholders. The acquired assets are largely intangible.

you make the call. I'd say it looks down either way, but internuts are fanatical folks, so who knows.

dh
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