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Medley Capital Corporation Comm Message Board

  • pmlljl pmlljl Nov 16, 2002 7:22 PM Flag

    Goodwill writeoff!!

    I used to be a fairly large shareholder of Mestek shares, but I got concerned with the potential lawsuits regarding pollution and asbestos and the relatively massive buildup of goodwill on Mestek's balance sheet. Since I have an intense aversion to purchased goodwill and don't like to be involved in lawsuits, I sold all of my shares at higher prices. Now the goodwill has proven not to have much value. The company simply paid too much for some of its acquisitions, way too much! Empire building can be very expensive. The company also acquired some very expensive liabilities in the form of pollution lawsuits with some of those acquisitions. Just like investing in stocks, corporations acquiring other companies must be very careful what they buy. You can be very careful when you buy or you can regret your choices for many years. The responsibility for these fiascos belongs to the management who initiated and approved these costly acquisitions. My advice is not to pay goodwill for mundane companies ever!!!

7.84+0.03(+0.38%)Oct 25 4:02 PMEDT