GREY:HRIVF - Post by User
Comment by
Honkeybillon Dec 02, 2009 5:36pm
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Post# 16547386
RE: RE: Now, Cash/Inv.= $182M, Debt = $94M?
RE: RE: Now, Cash/Inv.= $182M, Debt = $94M?The write-downs are a reduction in the market value of an asset the corporation owns, that the company shows publicly on the financial statements they release. They don"t actually part with any cash when they write an asset down.
It's like this.......you bought a car 2 years ago for 40 grand.......now you go to the bank for a loan and when they ask you what your assets are, they look at your car and tell you it's worth 20 grand. You didn't lose any actual cash when they re-valued your car.......they just "wrote-down" the value to reflect what the asset was actually worth.
Having said that.........not writing down Prognoz would have helped HRG look more "undervalued" at the current sp.