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To: Baldur Fjvlnisson who wrote (1104)	4/30/2002 1:22:28 PM
From: andydaoust	Read Replies (2) \| Respond to of 1567

Baldur, I agree that it is not good that companies are writing off their goodwill. I don't think it is as bad as that article indicates. i.e. CSCO @ $60 buys xyzcomm @ $60 per share in a one for one stock trade. CSCO drops to $15. I've already lost 75% of my value in xyzcomm, whether CSCO writes the goodwill off or not. It really did not cost CSCO any money in cash to acquire xyzcomm. It did cost the CSCO shareholder dilution. So the important question is did the takeover increase cash flow to CSCO by more than the CSCO shareholders lost by dilution. If not it was a bad investment. Andy D