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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (5210)	10/30/1998 1:25:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78525

Jeffrey Bash: Thanks for your insight re. TMO. I'll have to discount published BV and operating earnings, based on your analysis. Do you have more info. relating to 3 remaining strengths I see: $11.00 sh. cash (according to Yahoo), increasing sales every year since '92 (and relative low psr now), and very strong (IMO) technical/research staffs?

To: jeffbas who wrote (5210)	10/30/1998 8:53:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78525

That's an interesting point of view on goodwill. I take exactly the opposite position on this accounting question. In most cases, I add goodwill back to earnings, thus ignoring it completely. You on the other hand think goodwill amortization is understated. My rationale is that if a company paid a fair price for an acquisition, amortization has zero economic meaning. And if they overpaid, then write it off all at once, not over 40 years. Goodwill amortization is one of my pet peeves. Why do you think it matters so much?