www.thestreetsweeper...P_Stock_Will_Deflate
Negative article.
Insider Selling.
This is a little copy paste from the article. Even more shady details in the article!
SLP's initial payment of $5.2 million consisted of $2.08 million in cash and over 491,000 shares ultimately valued at $3.277 million. (SLP will need to pay the remaining $720,000 cash and 170,014 issued shares in July.)
This transaction would normally prompt a pretty big hit in the income statement.
But the company did something that’s perfectly legal yet quite surprising.
The company allocated almost $4.8 million of the acquisition cost to "goodwill." So goodwill – the premium SLP paid over Cognigen’s book value – accounted for over 90 percent of the initial payment. By allocating it this way, SLP kept the vast majority of the cost off the income statement.
Negative article.
Insider Selling.
This is a little copy paste from the article. Even more shady details in the article!
SLP's initial payment of $5.2 million consisted of $2.08 million in cash and over 491,000 shares ultimately valued at $3.277 million. (SLP will need to pay the remaining $720,000 cash and 170,014 issued shares in July.)
This transaction would normally prompt a pretty big hit in the income statement.
But the company did something that’s perfectly legal yet quite surprising.
The company allocated almost $4.8 million of the acquisition cost to "goodwill." So goodwill – the premium SLP paid over Cognigen’s book value – accounted for over 90 percent of the initial payment. By allocating it this way, SLP kept the vast majority of the cost off the income statement.