This is the HPE stock side and not the HPQ stock where the laptops are made. The HPE side does not deal with hardware such as Laptops.
99% of the time \, the numbers are fabricated and in a perfect world scenario. I saw a report yesterday that projects 30 as the word case scenario, and 54 as the best case scenario for WDC. Given the huge number of shorts, and increasing large put purchases, I would be very careful. We always as traders/investors think something has reached the bottom, and jump in, and will find out that we do not have the stomach for it since it will keep going lower.
Stocks always fall just when you think they can not fall any more. They defy logic in almost all the time because money managers will manipulable the market.
They must have pointed to something in their conference call today i think JPM
is this going to test the lows again. #$%$. I lost so much money on this shir is not even funny.
The Valeant acquisition machine often pays a substantial premium for companies. That purchase premium is booked to its goodwill account, but Valeant has not been retroactively adjusting net income and expense when it subsequently revises the balances it calculated at the time of acquisition.
Accounting rules, called GAAP or generally accepted accounting principles, require companies to adjust the amounts recognized at the acquisition date when new information is obtained about facts and circumstances that existed as of the acquisition date. That adjustment is made to goodwill, but the company must also recognize income or expenses for adjustments such as depreciation, amortization, or tax reserves if those amounts change.
Companies have up to one year from the acquisition date, called the measurement period, to get the business combination numbers right. Valeant, however, has not adjusted income or expense in prior periods for the “measurement period adjustments” for any of its acquisitions since 2010. It’s not clear from its SEC filings whether Valeant is also avoiding a current period income statement impact when there are adjustments that it says have no “significant impact” on its consolidated results.
During the last five years since Valeant was acquired by Biovail in September of 2010 in a tax inversion deal for $3.932 billion, Valeant has spent more than $27 billion on acquisitions, and the company’s goodwill balance has grown to $17.4 billion at Sept. 30 from $3 billion.
Amounts in millions 2010 2011 2012 2013 2014 Through 9/30/2015
Total Goodwill 3,001.4 3,598.8 5,141.4 9,752.1 9,346.4 17,374.7
Total Operating Income (110.1) 299.9 79.7 (409.5) 2,039.7 1,332.7
Valeant tests the goodwill balance for impairment at least annually at the reporting unit level, but has never recorded a goodwill impairment adjustment. An impairment adjustment would be necessary, according to accounting rules, if the recorded value of its goodwill ever exceeded the fair value of company assets acquired. A goodwill impairment would also negatively impact net income.
Instead Valeant makes “measurement period adjustments” to goodwill and then says those adjustments are not material enough to bother adjusting the prior period financial statements. If you include Biovail’s acquisition of Valeant and the “measurement period adjustment” identified for that deal of $117 million, SEC filings show that Valeant has made approximately $345 million of adjustments to goodwill from 2010 to the end of the third quarter of 2015 for changes to deal details.