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So even though Cogeco made massive profits in Canada, expect another price increase in six months.

Of course, Cogeco didn't actually lose any money, they just wrote down the value of their Portugese interests. It's an unrealized loss at this point. Unless they sell those interests at current levels, they've lost nothing.
 

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Of course, Cogeco didn't actually lose any money,
Of course they did. They have an asset that is worth $225 million less than it was before.

If you own a stock that you bought for $10,000 and its now worth worth $10, did you lose money even you don't sell it? Of course you did.
 

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And they will continue to lose money in Portugal as they can not compete with Meo (IPTV and FTTH service by Portugal Telecom) and ZON cable.
 

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Of course they did. They have an asset that is worth $225 million less than it was before.

If you own a stock that you bought for $10,000 and its now worth worth $10, did you lose money even you don't sell it? Of course you did.
Unrealized loss.....that asset could rebound. Until they sell it, they've only taken an ACCOUNTING loss. Is it a loss? Yes. Will it hurt their investors? Yes, but again, only if they sell their shares at a reduced level.

Calling it a loss just makes it easier for them to sell a price increase here in Canada. It's actually a WRITEDOWN in value of an asset. They just changed the number in their general ledger describing the value of that asset. You lose money when you sell it for less than you paid, and that hasn't happened yet. Same with your stock example. No, I haven't lost money because I haven't sold it yet. Will I be pissed that it's gone from $10,000 to $10. Hell yeah. But I probably won't even sell it at $10 because then my money is down the toilet for good.....I'm clinging to hope it will at least get back to $1000 so I don't have to shoot myself in the head.

They're playing word games. This is akin to Bell calling me and telling me I can save money by purchasing a calling features bundle for $15, when all I have is call display which costs $11. How do I save money by paying $4 more a month than I do now?

Interesting enough, I just re-read the article and while it refers to a writedown of $225 million, the Cogeco employee cited calls it a "write-off". Those are two different things. A write-off would mean that they've lost the $225 million for good because they don't expect they'll ever get it back.
 
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