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Microcap & Penny Stocks : Tokyo Joe's Cafe / Anything goes -- Ignore unavailable to you. Want to Upgrade?

To: Yo Yo who wrote (30380)	8/10/1998 10:48:00 PM
From: Shoot1st	Read Replies (1) \| Respond to of 34592

Yo Yo...I wish you posted more frequently....I like the way you cut through the surface and get to the reality of a companys' value. thanks. Shoot1st

To: Yo Yo who wrote (30380)	8/11/1998 12:37:00 AM
From: Big Dog	Read Replies (2) \| Respond to of 34592

It's all about making money and GUCO was .26 when I brought it out and it went to .70 Almost a 300% gain. Thats pretty darn good for a company in the hole $17.00 per share. I wish I could find one of those everyday. BIG DOG

To: Yo Yo who wrote (30380)	8/11/1998 6:51:00 AM
From: Money Maker (MM)	Read Replies (1) \| Respond to of 34592

About Goodwill on PSAI. I quote this from PSAI 10K Goodwill represents the excess of the purchase price of acquired businesses over the fair value of net assets acquired and is being amortized using the straight-line method over thirty years. The carrying value of goodwill will be reviewed if the facts and circumstances suggest that it may be impaired. If this review indicates that goodwill will not be recoverable, as determined based on the undiscounted cash flows of the entity acquired over the remaining amortization period, the Company's carrying value of the goodwill and related assets will be reduced to their fair value. It's common in business to purchase a company with the price higher than its fair value of net assets acquiere especially on company which has good future. We pay premium on it....:) That's on accountancy standard. I give you an example: PSAI aquired company A for $50MM. Company A has net fair asset value for $40MM. So, the excess price of $10MM we record it as a goodwill. Now, ask yourself, it's fair not to count it as company asset? PSAI still have a chance to sell "company A" with the premium price in the future. It's still possible to sell it more than $50MM such as sell it for $70MM. PSAI will have gain for $20MM or $30MM from net asset value of "company A". Remember, every year, company amortizes its goodwill. What does it mean? It means its goodwill on company A will decline year by year. We count a depreciation as an expense to company. As my example above, when PSAI sold "company A" for $70MM, PSAI will have more profits on its book....:) I hope you understand now....:) We are going to NORTH........:) Always do your DD. MM