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.

Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Spots who wrote (11316)	1/24/1998 10:00:00 PM
From: Jonathan Bird	Respond to of 12298

According to accounting rules, it makes a big difference on the bottom line, on book value, and on indicators market analysts watch. I couldn't agree more Spots. When a stock is in trouble like APM, everybody seems to look to book value as an indicator that holds up the price. They say "if it gets too close to BV it's gonna be a takeover target." Whether not this is realstic or not doesn't matter. Book value is misunderstood. But it does in fact support the stock. And its not just the market that looks at the ballance sheet. Its also APM's crediters. Some of APMs short term borrowings are secured against its assets. And these assets are on their way to being halved. It will also affect APMs ability to raise cash in a crunch. Jon Bird