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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (53664)	6/15/2001 9:53:59 AM
From: GVTucker	Read Replies (1) \| Respond to of 77400

John, RE: The "book value" NT are writing off, isn't it goodwill? Which wouldn't even have shown up if purchases were accounted for by "pooling". No, you're right. But that means that NT's past net income would be overstated when compared with CSCO. (Note that this doesn't address the overstatement of net income by both companies.) Thus, once NT has their big write off, that should eliminate any past overstatement of net income. And in the end, it turns out that NT had no net income at all. At least CSCO made money once you net out the write off.