Friend   Blog Post  Accordia Golf Trust: When shortists attack and investors panic for nothing.
Accordia Golf Trust(AGT) plunged today with the already informed impairment to its books. I did not buy enough during the deposit saga when it plunged to a low of $0.495. I thought the chance is here again and its not even a year but had since rebounded.
The impairment are of mainly goodwill and fair value of golf course. Now, impairment to goodwill or fair value does not affect the cash generation of a business, if the business generate $1 billion of income before the impairment, it still generate the same after with everything else remain constant. So the PB ratio is now 0.82x, up from 0.65x, it generating the same income which the reason I bought in the first place, there is no reason to panic.
IMPAIRMENT! RUN!
What is this goodwill that make everyone panic and sell? The ...

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