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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: U Up U Down who wrote (40257)	1/25/2001 7:37:45 AM
From: LastShadow	Read Replies (1) \| Respond to of 43080

Goodwill The folks who make accounantingrules have proposed a change to how goodwill ( thie difference between what a company pays for an acquisition versus what the fair value it) is treated on a company's books. Basically instead of writing the goodwill off over 40 years, the numbers would just sit on the books untouched. What this means is that companies big on acquisitions may look a whole lot better after the accounting change. GE for example could see as much as a 15% earngings inprovement this year alone just for not having to write off their acquisitions that way. So we might see a bunch of analysts raising target prices for some companies by 10 to 30% based on earnings changes. The value of the company doesn't changed, just the bookkeeping - but still that should drive some stock prices changes. just a thought. lastshadow