jonwig - whether or not anyone is long or short is no concern of mine; I for one appreciate posters who can add to the debate of whether a share is worth buying/holding etc, and it's always good to question the facts that are being presented.
However, I'm still in disagreement wrt goodwill!
Adding back goodwill amortisation is, imo a more accurate gauge of a Company's actual distributable earnings, as this is a non cash figure and primarily exists as an accounting convention.
For the same reason negative goodwill must be always be deducted from earnings, as this can artificially inflate EPS figures.
The existence of goodwill on a balance sheet or as part of a buy out consideration, should not in itself be taken negatively, economic goodwill is a very real asset that exists through brand/product loyalty and needs to be valued.......I would possibly be more concerned about a balance sheet compromising of significant fixed assets in the way of plant and machinery that will require repeated capex to keep them in good order.
Anyway enough of goodwill......
The real question, as you touched on earlier is what is profitable in the existing RGD Company and what isn't......more to follow!
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