RE:RE:RE:Quality of Remaining Intangibles?DMR001,
I don't think intangibles are what you are thinking they are.
In a simplified scenario, if a company is bought for $100 million and the hard assets and equipment are worth $60 million, the rest is intangibles. This is the value of the "brand", patents, copyrights, contracts, etc. which assists the company in generating revenue. They are typically amortized, however if the underlying business revenue/earnings deteriorates to the point that the market value is reduced the accountants may require the balance sheet value to be marked down.
In the case above, if the hard assets have depreciated to $50 million and the overall company value is now worth $70 million (based on reduced earnings), intangibles are marked downt to $20 million from $40 million.
An IT company could have material sellable value in their patents as pure Intellectual Property.
A company like Yellow is almost entirely branding and customer lists. if those customers lists and brand value is results in reduced revenue per client, the value goes down, which is the case with Yellow. The dissappointment with yellow is that their assets are being reduced faster than their debt levels, which is concerning as it reflects their inability to generate organic growth.
Good luck.