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Non-Tech : Boston Market (BOSTQ) -- Ignore unavailable to you. Want to Upgrade?

To: pcyhuang who wrote (1178)	4/30/1998 9:43:00 AM
From: SeanS	Read Replies (1) \| Respond to of 1567

Someone please help me on this. I understand that companies are valued mostly on income (mostly expected future). I also understand how depreciation works (value land at cost and depreciate buildings and equipment), correct? Now on the next point I may be grasping. But I have been studying real estate values recently and it appears from the articles that I have read that commercial as well as select residential real estate values are really beginning to sizzle. Now, assuming that BOST and it's area developers own their property and buildings, should they not be profiting from this runup? They will be valuing property on their books at much less than it is actuallly worth. This won't show up in income statements or balance sheets , I know. But, won't this help them in any future borrowings or in any potential takeover bids. Of course I am assuming they don't go chapter 11 and liquidate at fire sale prices. I am probably missing some important points here. Will someone please comment on this?