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Strategies & Market Trends : Greenblatt's Little Book That Beats The Market -- Ignore unavailable to you. Want to Upgrade?

To: mikeslemmer who wrote (31)	1/24/2006 7:51:07 AM
From: Stewart Whitman	Respond to of 218

Greenblatt makes the case that that EBIT should be very closely approximate Cash Earnings - Capital Purchases of Tangible or Intangible Assets, because Capital Purchases should be approximate Ammortization + Depreciation. That's what you're suggesting in the NOOF case, and I think it's probably generally true as well - if you've purchased intangibles for cash (like NOOF's distribution rights) and your ammortization schedule is accurate. I think that might be the general case as well. It really depends on the nature of the intangibles. Regards, Stew