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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (11733)	1/6/2001 5:57:08 PM
From: TimbaBear	Respond to of 78515

Thank you for your reply! I agree that each situation has to be ultimately evaluated in and of its own particulars. I'm just using this method to cull through a host of names to get to those worth spending more time on. Goodwill is always a tough issue for me to evaluate. On the one hand, one of the definitions of "fair market value" for appraisers is "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and the seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus." On the other hand, having been a mortgage broker, I know both the rigors of appraisals and the abuses that sometimes occur when less adept appraisers are intentionally used to support a pre-determined valuation need. My point, though, is that a company did pay a premium to book value(or goodwill would not exist in this context)and that price is also a factor in fair market valuation. I usually don't have the familiarity with the data of any company to know otherwise, so I think I must assume there is no less than 50% less value in "goodwill" in a company that otherwise exhibits sound behavior. I don't know whether it is the recency of the plant building or the uniqueness of its design which would have the greater impact on marketability or, I guess more to the point, the resale price it could command. In any event, the companies in this listing have(percentage-wise) very little "other" assets....was just looking for feedback like yours to help spur my lazy brain cells. Thanks again Timba