Replies to post #31455 on Chemtura Corp (fka CHMT)

[alexfw]

Hi all - small position here (although substantial for me) that I started at .08 and have added all the way up without flipping a share, with the last buy at .53. Thanks for all the great DD here, and for the superb education I've received these last few months...

I have a question about the 10-Q and some of the insight that CEMJQ (multi) Millionaire and MadClown among others have provided about the goodwill writedowns.

I know it may actually understate assets since physical plant etc. may depreciate faster on the books than in real life. However, since they seem to be hinting that further goodwill writedowns are to come, I'd appreciate some insight into what happens if they write off the rest of the goodwill and/or mark down any other assets that are subject to that kind of judgment call (what comprises that "intangible assets" line item besides patents anyway, and are they subject to being revalued down as well?).

If they were to be aggressive about writing down goodwill etc, is is possible that book value could go into negative territory and give the judge a fig leaf for ignoring the claims of common shareholders?

Given the huge volume and block buying, I'm pretty confident that more knowledgeable folks than me have concluded it's not a concern, but I would still like to understand why.


Thanks!