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

To: BWAC who wrote (57320)	2/7/2002 9:19:58 PM
From: Sweet Ol	Read Replies (1) \| Respond to of 77400

BWAC, you missed the whole point. Please re-read my post, Message 17031363 I noted that when you reduce the numerator of a fraction the value is diminished. When you reduce assets by eliminating Goodwill the value of the assets per share gets much smaller. Most people don't want to pay as much for something whose value is decreasing. Now what is goodwill? It is the difference between the book value of a purchased company and the actual price paid for it. That inflated price includes all the intangible things such as the brand name, the intellectual property, the staff, and etc. that we know make a company more valuable than its book value, but we do not know how to evaluate. If you eliminate Goodwill then you must have overpaid for those companies and their value is nowhere what you paid for them. But we know that is not the case, so the Goodwill has a value and as a buyer of a share of the company I am willing to pay something for those intangibles we call Goodwill. You can't ignore it, because it is one of the metrics we use to evaluate a company. After all, it is he future value of our stock that we are interested in - right? I bet you are as tired of this subject as I am. Let's call it quits for the night. OK? Best to all, JRH