oxygen: July 6, 2013 at 10:41 pm (Quote) ON THIS ONE, I WOULD SAY JEREMY CHEN IS WRONG. You have not factored in the critical role of (forensic) investigative accountant. In some situation like “no shop, no talk” exclusive friendly takeover, the forensic accountant capacity to look critically at what the number means in financial analysis and valuation of takeovers can be a do or die outcome. A lot of such M & A turned out to be drastic miscalculation in the gold sector once gold price collapse since April 2013. mining/kinross-gold-puts-tasiast-expansion-at-us2-7-billion-19840/ business.financialpost/2013/02/14/barricks-overpriced-equinox-acquisition-comes-back-to-bite-in-us4-2b-writedown/ bloomberg/news/2013-06-23/gold-miner-writedowns-at-17-billion-as-newcrest-signals-fallout.html But despite the conservative outlook among accountants, my strongest hunch is that accountants tend to make poor investors – they buy in good times of good news (when prices near peak) and sell in bad times( when prices hit near bottoms). And of course, they can’t look beyond financial statement analysis forgetting that it is the OUTCOME MEASURE OF OPERATION instead of understanding what drives the success or failures of that business. Hence many takeovers ended up badly for the hunter. And depending on where one lives, the best field of endeavor varies. For those in Australia or Canada – geology might be the best because everything we eat or use must be grown or mined. If we don’t grow it, then we MINED it for best value. The whole world needs geologists
Posted on: Sun, 07 Jul 2013 05:29:21 +0000
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