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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (172075)	12/3/2002 9:29:53 PM
From: pgerassi	Respond to of 186894

Dear GVTucker: But, Intel's logo and reputation are not in that Goodwill number in the balance sheet. It is comprised of those in the companies they bought which how many remember now? Very few, if any. That overpayment of book value should be reduced over time (writing it straight off is what I desire because it distorts reality). If TSE ever goes negative, that company is technically bankrupt whether or not they have some logo, reputation or other intangible assets. Matter of fact, intangible assets are usually overstated. Most people think their ideas are worth more than what others think they are. Sometimes those intangible assets are really intangible liabilities. Have you ever seen negative goodwill? How many times has a company closed a division or sub unit and not only write off all of its assets, but spend even more money. They don't call it badwill, do they? They call it either special charges, intangible closing costs or some such. That Intel's logo and reputation act more like a marketing multiplier rather than a fixed asset. When times are good, the multiplier is much above one When times are bad, closer to zero than one. I think that it models better than the fixed asset does when times are changing and it comes closer to the actuality of it. Multipliers have no business on either the balance sheet or P&L statement. They can go in the explanations of items in the annual reports and prospectus. Pete