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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: redfish who wrote (32488)	6/22/2005 11:17:28 AM
From: zonder	Read Replies (2) \| Respond to of 116555

The point is not whether or not potential investors have any idea of their current (zero) tax liabilities, but rather that if they will start paying taxes in the order of 35%, that significantly affects their future cash flow and hence their valuation. This is kind of important for a company on the verge of going public. re "high margins" - not going to be so high after 2010 (best case scenario) or possibly as early as 1 Jan 2008 (if IPO is considered "change of ownership"). To give you an idea: 2004 profit margin of 58% would have been reduced to 38% if company were paying tax. If you still think that does not change the company's outlook, I have a shiny new bridge I would like to interest you in :-)