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To: geewiz who wrote (143501)	1/13/2002 7:29:57 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 436258

excerpt Under the new rules, the acquiring company must value that premium — which is known as "goodwill" in accounting parlance — as an asset on their books and valued once a year. On one hand, many companies will report higher-than-expected quarterly profits in 2002 because they won't have quarterly write-offs of goodwill. "There will be a benefit, that's unequivocal," says Chuck Hill of Thomson Financial/First Call, which tracks corporate earnings. The accounting change doesn't affect the company's cash flow, so in theory, it shouldn't affect the stock price. However, some investors might bid the stock up anyway because of its higher reported earnings. But, Hill says, "My rough rule of thumb is you end up halfway between." A 10% boost to earnings would result in a 5% increase in the stock price, Hill says. On the other hand, after the initial bump this year, earnings will look paler by comparison in the following years. "It reduces everybody's growth rate," says Ross Margolies of Salomon Bros. truth be known, this where the shananagins begin...it'll look good but, the reality will not. and nobody really cares? or so it will seem...trade..err tred accordingly.