Convertible Instrument Simplification Rule

Hi everyone.  Hope you are keeping healthy during the never ending COVID-19 pandemic.  For this month’s blog, I like to address a certain type of derivative product which the Financial Accounting Standards Board (FASB) enacted a simplification rule. ...

Accounting and Intangibles

Hi everyone, Hope this blog finds you all doing well.  Once again, we see the traditional “brick and mortar” accounting valuation techniques not reflecting what the market sees or pays. Companies that haven’t produced a profit have been selling for astronomical...

Derivatives and Risk

Hi everyone, Hope this blog finds you doing great. A lot going on in the field of valuation of derivatives.  In a recent survey by the AICPA, there is much concern about risks inherent in derivatives and the approaches used to value these constructs. For example,...

Non-Qualified Mortgages”- Here we go again!!

Hi everyone, In this month’s blog, once again we are seeing an emergence of a new type of financial instrument, called the “Non-Qualified Mortgage” with the same high-risk characteristics as sub-prime mortgages.  Here we go again!! What is most disconcerting is...

The Magic of PE 15

Hi everyone, Hope all is well.  Recently, a very interesting article about an expeditious approach to determine the fair value of stock was published.  I thought about it for a while and said to myself, it is worth summarizing for this month’s blog. ...