Maulik Nagri

Is Cloud Computing Ready for Prime Time?

Please use this forum to discuss investing. I am more interested in knowing how Google's outage would impact its valuation,

The Short Case on Priceline

Hello Bafnotrad:

In its March 26, 2008, FASB notified FASB Staff Position No. APB 14-a, “Accounting for Convertible Debt Instruments that May be Settled in Cash upon Conversion (Including Partial Cash Settlement)”. I understand that this FASB ratification makes FSP APB 14-a a part of U.S. GAAP applicable from fiscal years starting from December 15, 2008. In case of PCLN, interest expense will increase (thus reported EPS will decrease) because of non-cash accretion in the carrying value of debt. However, debt equity ratio (on accounting basis) will decrease, because fair value of the conversion bond is included in equity. This is a classic case of financial engineering that does not impact PCLN's operations or future business in any way. Except for the decline in EPS because of the convertible debt instrument, this disclosure in PCLN's 10K should not affect your decision to invest in PCLN.

I also want to commend Amit on an excellent analysis of why PCLN should be shorted.

Valuing ICICI Bank's Subsidiaries

Hello Tootse: IBN reported 35% earnings growth in Q3 FY08 compared to Q3 FY07. India is a highly under-banked country and IBN has many firsts in India to its credit including a solid private equity business and strong international expansion. Economic Times, a reputed Indian business newspaper, suggested that India's banking density is 6.3 branches per 100,000 people compared to Brazil's 14.5. Thus, there is ample scope for expansion in the next 3-5 years.