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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?


To: Allen Benn who wrote (8940)12/22/2000 1:08:39 AM
From: Don Lloyd  Read Replies (2) | Respond to of 10309
 
Allen -

...Just yesterday, the FASB announced monumental changes in how goodwill is accounted for. As everyone knew, the Pooling of Interests method of merging companies is no longer allowed. (This bothered many companies in Silicon Valley, including acquisitive Cisco, because of the requirement to amortize goodwill.) The surprise, at least for me, is that the FASB has also indicated that companies no longer need to amortize goodwill. They suggest that a one-time write-off of excess goodwill be taken when a company is acquired, and then just leave the remainder un-amortized on the balance sheet....

Does this mean that companies are likely (or allowed) to just take a one-time write-off of excess goodwill that they are currently amortizing for previous acquisitions?

TIA, Don



To: Allen Benn who wrote (8940)12/22/2000 1:38:51 AM
From: Raymond Duray  Respond to of 10309
 
Hi Allen

I was redirected from another thread, sorry for the intrusion, but I have to ask:

For example, WIND could start buying stock tomorrow to squeeze the shorts who are aggressively tanking the stock.

Ummm, do they have the cash? And if they do, is this a prudent move in the face of a recession?

Just wondering, Ray



To: Allen Benn who wrote (8940)12/22/2000 10:53:30 AM
From: Erwin Sanders  Read Replies (1) | Respond to of 10309
 
<In particular, expect WIND to acquire along with everyone else, and possibly be acquired like a lot of others.>

Hi Allen:

MWAR is unbelievably priced now. Do you see much possibility of WIND taking this over? At least their staff must be worth something to WIND, if not any of their products.

Merry X-mas
Erwin



To: Allen Benn who wrote (8940)12/29/2000 9:10:42 PM
From: James Connolly  Respond to of 10309
 
The surprise, at least for me, is that the FASB has also indicated that companies no longer need to amortize goodwill. They suggest that a one-time write-off of excess goodwill be taken when a company is acquired, and then just leave the remainder un-amortized on the balance sheet.

Allen,

Do you expect the new FASB rules to change the price companies are willing to pay for an acquisition ?

Regards
JC.