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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (14444)	11/10/1999 6:22:00 PM
From: Win-Lose-Draw	Respond to of 18016

Re: Changes to aquisition Ok, no dilution is a Good Thing, possibility of lessened tax liability is a Good Thing - but do all these Good Things together add up to US$3/share in afterhours trading??? I'm not complaining, mind you, just wondering if this pop is overdone and I should jump out in the morning and jump back in when it dies down. This stock is one rollercoaster of a ride...

To: zbyslaw owczarczyk who wrote (14444)	11/10/1999 7:29:00 PM
From: Ian@SI	Respond to of 18016

ZO, I'm not an accountant but I believe that any excess of amount paid over book value goes onto the balance sheet as goodwill and then is depreciated over time. An email or call to John Lawlor should probably get a correct and complete answer. Market seemed to like the all cash deal, so it can't be all bad. With the afterhours trading above $20, NN has gained more than 35% from the post Lutz low. Obviously selling on Lutz's removal hasn't turned out to be a very brilliant move so far. Ian.

To: zbyslaw owczarczyk who wrote (14444)	11/10/1999 10:20:00 PM
From: Doug	Read Replies (1) \| Respond to of 18016

Z.O: Under the Purchase method the difference between the current Sale price and the Tax Asset base of the Acquired Company results in "Goodwill". That Goodwill has to be amortized against Income. The period of Amortization can vary from 2 to 40. This indirectly reduces the tax base but it does impact the bottom line. Some pvt Companies which have sudden Income use the "hidden Pooling method" which really is a Purchase method but a 2 yr accelerated Amortization. This results in them showing little or no Income for Tax purposes. Trust this helps.