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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (103844)	4/14/2006 6:35:10 PM
From: Knighty Tin	Respond to of 132070

Wayne, this is tough. I thought Time Warner was undervalued for a decade. They were writing off goodwill and posting losses, but cash flow was huge. Damned Bugs Bunny had to be written down. <G> This is a new network. My number one concern would be, are they going to make it, or will it be another UPN? It is always hard to guess as tastes change. I think the GAAP accounting makes sense. The network may be a one horse shay, but spreading the accounting costs over the lifetime of the equipment makes sense. Also, paying taxes on earnings that aren't really earnings makes no sense at all. So, I'd look for breakeven point when cash flow exceeds expenditures, whether real or bookkeeping. When that happens, what will be the sum of the dividends paid? It is a tough problem because every number you crank in is a guess.