UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: cantrell11 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3955  
Subject: Re: What IS Goodwill when listed as asset? Date: 2/22/2001 10:38 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
-- The quoted stock price each day indicates how much the market will pay for a piece of a company, in cash. --

Isn't this fact almost another 'goodwill' over and above everything else on the balance sheet equity (including goodwill proper).

This stated, the overvaluing a stock due to let's say - unnecessary exuberance in a particular sector - results in an ensuing reduction in the stock price after investors get the reality check.

Wouldn't a reality check in a sector create big doubts in big chunks of goodwill that may be the result of companies purchased during the exuberant phase of a sector development? Take WCOM for instance. 46B out of 55B equity is goodwill. No wonder their price/book is less than one.

Does anyone track the total goodwill outstanding in a group of companies or within a sector as a measure of how overvalued or speculative a particular industry may be?

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Saul's Investing Discussions

Gilead Sciences CC Thoughts
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.