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Technology Stocks : Aviat Networks -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (238)	1/8/2009 1:54:08 PM
From: The Ox	Read Replies (1) \| Respond to of 312

For the most part, I write off Goodwill whenever I look at a company's balance sheet. In any fire sale or distressed situation, Goodwill is relatively useless and unnecessarily inflates a company's book value. Its basically an accounting measure that holds the store of "overpayment" when acquiring an asset. Over 40% of HSTX's assets on their balance sheet are in the Goodwill and intangibles category. In the latest report, one can subtract 20% from A/R and 50% from Inventory, remove the intangibles and goodwill and come up with about $4/share for Net Tangible Assets. IMO, this is the most they get from a fire sale but it shows that IF the company can generate earnings going forward that the stock price was relatively inexpensive a few weeks ago. Keep in mind that fire sales don't usually give alot of credit for customer bases and intellectual property, some of the things that make up goodwill and intangibles.

To: Rob Preuss who wrote (238)	1/16/2009 6:02:15 PM
From: The Hogman	Read Replies (3) \| Respond to of 312

Rob, I have looked through your past blogs on HSTX (Formerly STXN) and you are generally very optimistic and keep talking about adding shares everytime this stock tanks. Consider, this stock as STXN went from ~$45 to ~$5 a share several years ago. STXN was then sold as a company and 4 shares of STXN transferred as 1 share of HSTX. HSTX at the transfer date sold for ~ $20 a share and today sells for ~$6. This stock has taken a bath. From what I see HSTX is a dog that looks to be ready to be sent to the pound. The parent company I see as looking to divest. I cut my shares in this stock YEARS ago and am happy I did. I have a few shares left and am looking to sell them soon. Buying more stock in a company that keeps going down makes no sense whatsoever. Like the saying goes...you gotta know when to hold'm and when to fold'm. I know a guy who bought STXN on its way up and made millions...then when it started down he kept holding and buying more. Now he has a lot of paper but not much money. Hope you did not make this mistake. Hogman1