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 : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: shoreco who wrote (48002)	4/6/2002 7:27:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 99280

Shoreco, the travesty is that the tax payer will pay for that binges. The companies did these acquisitions with inflated paper and the write down have no impact whatsoever on cash flow, actually it will have a very positive impact on cash flow. Typically, a profitable company pays about 35% to 40% in taxes on earnings, however, the allowance of that rapid write down (under the guise of cleaner accounting) will result in immediate losses, and thus the taxation will be nil. Take for example JDSU, they wrote off, if memory serves what was in essence their acquisition of SDL for paper (their own inflated stock at the time) $50 B (if memory serves), they will not earn $50 B cumulatively for, let say the next 10 years, all their earnings, until they cumulatively earned this $50 B will be tax free. Who will pay the shortage in taxes? Us. If that was not enough of a travesty, they sold that deal to the public, and the public was actually left with that worthless paper, so the public not only is going to have a greater burden of the tax load, but are stuck with those cap losses as well. Luckily, that is going to have "only" an impact of some $30 to $40 Billions per year of the next 10 years or so (in term of federal revenues shortfalls), and that is an mpact we "can live" with Zeev

To: shoreco who wrote (48002)	4/6/2002 7:47:26 PM
From: mishedlo	Read Replies (3) \| Respond to of 99280

CVC someone help me out here but this looks pathetic. biz.yahoo.com As I see it, had they not sold $2B in assets they would have had a $1B loss. They made $ by selling off assets? How long can this continue? Am I reading this correctly? Also I note a huge interest expense. Yhoo profile does not show debt/equity ratio but did they have to sell assets to pay interest expenses on debt. How much debt is that and where is it hidden? M