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.

Strategies & Market Trends : MP - Market Pulse -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (954)	7/29/2001 5:27:41 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1328

Tim, I am not so sure about the SDLI buy being dilutive, at the time, the price to book of JDSU (book without goodwill) was higher than that of SDLI, if memory serves. As for taxation, corporation pay taxes on portfolio gains (stocks appreciated and sold), and marking to market at the end of a period (with SEC blessing), is simply the reverse, it is a loss and such a loss should, but I know not for sure, be compensating future gains. There would be no valid reason to recognize so rapidly all this good will, particularly when there is no forcing market for the securities of SDLI nowaday. I think they are cleaning the book retroactively, accepting a reduction of the book value to closer to their own market value, hoping the market will forget (it will) and taking the tax benefit of this episode. All in my opinion, maybe there is a corporate accountant amongst us who can clarify the tax treatment. Zeev