RE:RE:Zero book value is normal for some companies. Aminvestor1234 wrote: bigbear4511: I am new to this board as I am interested in buying SPB shares. I think you erred in a couple of points that you made. (1) When you depreciate/amortize/write off an asset, you could only reduce it to zero but not a negative amount. (2) Any recapture of depreciated amount is taxed as ordinary income, not capital gain. So far I like what I see on SPB. The fundamentals are pretty good, zero insider selling in the last 12 months. The thing that concerns me most is the negative revenue growth. GLTA.
Yes, you could only reduce specific to zero. But in Canexus case, they had massive goodwill writedowns already, which is a fantasy number to begin with. So as they continue to write down assets (which is what happened) after a goodwill writedown that occured last quarter, you can end up with a negative BV value. (I should have said ...in Canexus case)
Yes taxed as ordinary income instead of captial gains (rye was kicking in) My arguement still remains. Also canexus with all is its losses may have significant NOL's that have been carried forward that may help out the bottom line for Superior.