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


To: jeffbas who wrote (5273)11/11/1998 11:22:00 AM
From: James Clarke  Respond to of 78530
 
>>Jim, what is your view when removing goodwill gives you negative equity?>>
Take Philip Morris as an example. If you removed goodwill, I believe equity is pretty darned close to negative. What that tells me is that book equity is not the way to value the company. Fixed assets are not what makes a company like that tick. Look to earning power. So I don't consider that a problem.