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: Mark Adams who wrote (11542)	3/24/1998 9:57:00 AM
From: Bill Lin	Respond to of 12298

i agree that the technological costs are increasing at faster than linear rate, so the re-investment amount of capital makes long term ROI (return on investment) figures negative. Thus you get write-offs of old technology. Part of the problem is the US tax system that forces writeoffs using straight line method for 7 (?) years, when often the equipment life is only 3 years. We are just getting into this problem with head manufacturers, IMO. I still don't get RDRT's writeoffs... agree that the merger with rdrt would have benefited both companies tremendously. rdrt should have accepted. they still should. BL