writing off an asset does not mean disposing of it- it is an allowable accounting manuever. for example- i still have my printer, new software, etc. but have "written it off" as a loss- which i am allowed to do- but it does not mean i have disposed of it.
Good stuff. You got me thinking again...Didn't the FFGO PR state something to the effect that FFGO was going to do an irrevocable write off. I did some googling and it sounds like the word "irrevocable" before the words "write off" would mean that FFGO cannot later change it's mind if HGLC's price went up and sell the shares for a profit. Then again....FFGO did buy them at an unrealistically high price that I don't think HGLC will ever see again even if it pops for some profit later down the road. Then again...according to my theory HGLC seems to be the cash cow, so who knows.
which will tremendously "offset" their record breaking profits. i, for one- view it as a smart move by FFGO- in anticipation of enormous profits to be realized very shortly.
I totally agree here. Sounds like a good way to profit without paying taxes for the total amount of the HUGE write off....especially if FFGO and HGLC truely are owned by the same entity of individuals. There is no realized loss if they only interact with one another because they're under the same corporate umbrella. Then finally, they find an outsider interested in their goods. So they take the new money from the outsider and maximize their ability to write off. Very slick way of saving yourself from the tax man eh? Hmmm, anyone want to try this? lol jk.
if they had wished to dispose of hglc- they would have sold all shares on the greys and THEN written off the difference. they have hung onto these stocks in their portfolio for a reason.
hope this helps :)
Yeah, something is in the wind IMO (bad or good who knows). If FFGO's shares in HGLC are truely going to be written off in the irrevocable sense, then I would image that this would almost be the same as HGLC buying back the shares and canceling them, reducing the number of outstanding shares.....but HGLC loses no money for doing this.....so it's a FREE buyback and share canceling technique???.....all theory.....just something to ponder....
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