Earnings result of writing up value of investments
I just came across this stock today , My interest was how a company with .05 cent earnings was
only trading at .19 cents . upon some quick review I see the earnings were the result of writing up
the values of its investments in investee companies to the tune of 781,147 or .05 cents a share
which accounts for the total profit reported. I was suprised that they would and could actually do this.
How does one determine the fair values of shares in a private start up companies , that in most
cases are propably not even profitable yet? and how does management convince their AUDITORS
TO ACCEPT such a write up??? How do you write up an asset that does not have a readily disposable market?
I think i will leave this on the back burner for now as the accounting is a little to agressive for me.