OTCPK:MGMXD - Post by User
Comment by
Harbinuson Jun 24, 2015 10:08pm
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Post# 23866198
RE:RE:RE:$30m to $35m in free cash flow in 2017
RE:RE:RE:$30m to $35m in free cash flow in 2017BoldForbes,
Frankly I don't think these types of cosmetic manipulation of the metrics would be a significant reason which would drive them to write down the assets, generally institutional investors will not be fooled by this kind of massaging of the numbers and will instead look to metrics like free-cash-flow vs. mkt cap which are not so simple to manipulate.
I think the writedowns are simply a function of management being transparent with investors that these projects are not likely to come to fruition any time soon or even ever. From an accounting perspective, you do need to test assets for impairment periodically and those "assets" were clearly imparied in light of BC Hydro's decision to build Site C and pull back from their Call for Power programs and offering significant contracts to IPPs like Alterra.