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 : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: brushwud who wrote (77316)	4/16/2002 10:35:52 PM
From: niceguy767	Respond to of 275872

brushwd: "It's a sunk cost which really doesn't matter going forward." But it does distort looking back if it's balance sheet value is not realistic...As mentioned to PTanner, INTC's S/E might have demonstrated a decline of $7 billion in the last year as opposed to $2 billion is, as just might be the case, most of INTC's goodwill is impatred...Compare a $7 billion decline in INTC's S/E with a $4 billion increase in AMD's S/E in the same period...That is exceedingly significant, imo...Nevertheless, sluff thsi "restated" divergence off if you wish!!! Hey, like I said earlier, the analysts have been making excuses for INTC for the better part of 2 years now...Comparative AMD/INTC S/E tells the tale of INTC's inferior financial performance over this period...Amazing, to me, how many of us buy the INTC party line, hook, line and sinker!!!

To: brushwud who wrote (77316)	4/16/2002 10:45:12 PM
From: Dan3	Read Replies (1) \| Respond to of 275872

Re: The best way to view Intel's goodwill is as several square miles of Silicon Valley real estate which just happens to be underwater somewhere out in San Francisco Bay LOL!!! A very good description of goodwill. If the Ocean dries up, it'll be worth what they paid for it (but didn't account for as a cost when they calculated their earnings).

To: brushwud who wrote (77316)	4/17/2002 1:07:54 AM
From: ptanner	Respond to of 275872

re: Goodwill as sunk cost Exactly. Goodwill seems to be a game to "preserve" equity when a company is purchased. Since most companies are valued (by the stock market as well as when purchased) at much more than book value Goodwill has the affect of assuming something was gained which was equal to the value of the cash paid. Now I wonder if under FASB 142 a company discovers its Goodwill is not impaired, but has in fact appreciated would they have to add a value to their earnings? <g> -PT (somehow in a restless feisty mood - sorry - perhaps AMD's earnings/CC will help)