Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: NY Stew who wrote (8741)	10/24/1999 6:17:00 PM
From: Jill	Read Replies (1) \| Respond to of 54805

Thanx for the clarification, Stew. Jill <eom>

To: NY Stew who wrote (8741)	10/24/1999 6:39:00 PM
From: JohnG	Read Replies (2) \| Respond to of 54805

Stew. That analyst that follows Gemstar said no profits for several years as a result of the merger. He said that perhaps the company will be valued on a cash flow basis. Appearantly there will be a large cash flow due to ammoritization/depreciation which is a non cash expense. I guess that this is partly due to the large premium over book paid for TV Guide being capitalized as "Good Will" and ammoratized over X years. The Gemstar financial status will be very mirky to me until someone can show me how this is going to work. I am sure other large companies are valued on a cash flow on a cash flow basis, but right off hand I can't think of one. I guess this does zero the Federal taxes unless there are some tax limitations on good will write offs that cause the tax return to be quite different from the financial statement. Have you worked through this issue on some preliminary basis? JohnG