Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: GVTucker who wrote (53666)	6/15/2001 10:10:23 AM
From: Stock Farmer	Read Replies (1) \| Respond to of 77400

Hi GV I don't understand the income overstatement part. Wouldn't NT's income have been reduced to reflect depreciation of goodwill? Also, if writedown was goodwill acquired for cash, then again naughty naughty. But the purchases were for dilution (pure shares). The effect of NT's charges therefore is to "effectively" reprice the acquisitions as though they were made today. Which curiously people would think was a "better deal". It's all the same in the end because they haven't changed the number of shares. So if you look at it that way, the goodwill writedown is a no big deal. It's a big number, but it's a non number. This leaves writedowns of inventory, bad debt and restructuring charges... same ballpark as CSCO maybe a little less. The big deal is (a) 2H 2002 recovery and (b) +10,000 jobs