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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?


To: michael liu who wrote (14280)3/5/1998 5:30:00 PM
From: Jonathan C. Williams  Read Replies (2) | Respond to of 45548
 
When you hear of something like this you have to understand the reasoning the SEC disallowed certain expenses to be classified as "restructuring costs". One you understand the reason, then you can conclude if the company will re-capitalize these cost and amortize over a 10, 20 or 40 years (I suspect they will be spread over 40 years). (156.2 million/40 years = 3.9 million to earnings/year (probable on one to two cents a year, net of taxes (I do not think it will be a big deal).

Comments/Regards.