Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (50118)	11/21/2012 11:05:29 AM
From: Dennis 3	Read Replies (1) \| Respond to of 78745

HPQ... Or it could be that HPQ's auditors incentives are fee's not the value of the potential aquistion. Large goodwill could be a good sign to stay away since it add layers to valuation that we small investor are at a disadvantage to value. Buying more TEO. I have to go where value is despite Argentina's reported problems. This is a export led economy and when deficits show up the government does some not so investor friendly things. Foreign direct investment has increase recently after dropping last year.

To: Madharry who wrote (50118)	11/21/2012 11:22:10 PM
From: Spekulatius	2 Recommendations Read Replies (3) \| Respond to of 78745

Re HPQ - I think you need to draw your own conclusions. We had quite a few discussion about HPQ, Leo Apotheker and their outlook at that time. HPQ may have many resources but have they used them wisely? The accountants can do only so much, my guess is that Autonomy's product was not as good as thought, and their accounting was probably very aggressive, but i am not sure it was outright fraud. I am working for a company that was very acquisitive years ago and now less so. You would be surprised what top execs buy on the seat if their pants apparently. Also, once a deal is in the works , it becomes pretty much an ego thing to close it, based on my observations. The technical and organizational folks running ops almost never get consulted until the deal is closed (probably to keep secrecy). Also, forget the "fairness opinion" of the investment banker, they always come up with reasons why the price that management is paying is fair. I have never heard of a deal that failed because the investment bankers working on it considered the price paid not fair. It is just not going to happen, the incentives are not stacked that way.