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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: David C. Burns who wrote (1134)	1/21/1999 4:33:00 PM
From: porcupine --''''>	Respond to of 1722

Thanks, David. Does it sound as familiar to you as it does to me? The examples of Coke, GM, and IBM. Even the quote from Buffett. However, I called Coke's ROE "miraculous", whereas he calls it "ridiculous", so that part is different. Kidding aside, his conclusions are not supprted by his arguments. I have questioned whether certain intangibles should be expensed at all, particularly acquired in-process R&D -- since it has already been expensed from the books of the acquired company. Condon presupposes a 3-year write-off period. In that case, contrary to what Condon claims, earnings are not really increased (and, therefore, p/e's aren't really reduced), because not expensing 2/3 of current R&D is more or less offset by writing off 1/3 of each of the previous 2 years of R&D expense.