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Topic: Overvaluation

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	Consequences of overvaluation of the in-kind contribution (Site not responding. Last check: 2007-10-09)
		In any other instances the shareholder who introduced the overvalued contribution is not obliged to compensate the missing value and the board members are not held responsible for the lack of full coverage of the share capital.
		In conclusion: the responsibility of the management board for overvaluation of the in-kind contribution introduced to the limited liability company is much wider than the one of shareholders, as members of the management board not only are responsible towards the company but also towards its creditors.
		The issue of overvaluation of in-kind contribution shall be particularly important in the light of the proposed changes in legislation, whereby i.a.
	www.masterpage.com.pl /outlook/in-kind.html (1211 words)

	Lope Markets - Overvaluation and the 1987 Stock Market Crash (Site not responding. Last check: 2007-10-09)
		If we say that the market considered the 19 PE ratio on the S&P the month of the crash as overvalued, and that overvalued conditions caused the crash, than instances of a PE over 19 in the past should have also caused a crash.
		If the market was overvalued on October 19, 1987 and a crash was the result, why did the market not crash on October 16, when it was also considered overvalued, or the 15th, the 14th, or any day in August when it traded with an even higher PE ratio?
		Overvaluation fails to explain the question of timing.
	www.lope.ca /markets/overval.html (468 words)

	Overvaluation Hurts--Learning From Others’ Mistakes
		Because exporters receive relatively less in domestic currency for the foreign currency they earn, and a significant portion of the costs of production are paid in domestic currency, exporters have reduced incentives and ability to compete in foreign markets.
		Productivity advances are less rapid because the export sectors and the import competing sectors are disadvantaged by an overvalued exchange rate, and it is in these sectors that productivity advances are often most rapid.
		Overvaluation induces capital flight, as domestic citizens anticipate a devaluation.
	www.worldbank.org /html/prddr/trans/marapr99/pg11box.htm (588 words)

	[No title]
		Turning to the facts of the instant case, the district court held that it was "without jurisdiction to entertain (petitioner's) de facto discrimination claims of overvaluation" (Pet.
		Accordingly, the Ninth Circuit held that the district court had erred in dismissing a railroad's overvaluation claim for a lack of jurisdiction under Section 306.
		Indeed, the terms "purposeful overvaluation" and "discriminatory intent" can be found nowhere in the language or legislative history of Section 306, but are a gloss on the statute that the Tenth Circuit made up out of whole cloth.
	www.usdoj.gov /osg/briefs/1986/sg860390.txt (2928 words)

	Volume 5 - Opinions of Counsel SBEA No. 120
		Our opinion has been requested concerning whether an assessment should be reduced in an assessment review proceeding grounded on overvaluation as a matter of law upon proof that the state equalization rate determined for the assessment roll containing the assessment under review was in excess of 100 percent.
		Accordingly, the only issue in an assessment review proceeding grounded in overvaluation is the market value of the subject property as of the taxable status date for the assessment roll containing the assessment under review.
		Accordingly, in our opinion, the state equalization rate is immaterial in an administrative assessment review proceeding grounded in overvaluation and that the only issue in such a proceeding is the market value of the subject property as of the taxable status date for the assessment roll containing the assessment under review.
	www.orps.state.ny.us /legal/opinions/v5/120.htm (732 words)

	[No title]
		From our own calculations, the probability for fixed exchange rates to become overvalued is substantially higher than for floating regimes, and the probability for exchange rates under fixed regimes to become seriously overvalued (in excess of 25%) is almost twice as high as for flexible arrangements.
		Overvaluation damages competitiveness because it artificially alters the price ratio between tradables and non-tradables, and the region’s producers of tradable goods find they are less able to compete with either imported goods or with other countries' exports.
		Continued build-up of further debt, at the same time, allows an overvalued fixed exchange rate to be maintained, since it permits the government to continue to borrow foreign currency to sustain the current account deficit and meet the excess demand.
	siteresources.worldbank.org /INTMENA/Resources/AUAExratepaper.doc (6471 words)

	BETTER TO GIVE THAN TO RECEIVE: EVALUATING RECENT IP DONATION TAX POLICY CHANGES
		The IRS has listed four areas of abuse for which it has particular concern: (1) excessive valuation of donated property; (2) inadequate substantiation of donations; (3) claiming excessive deductions when consideration is received; and (4) claiming deductions for the transfer of a partial interest.
		Therefore, while Section 170 resolves the overvaluation problem, its chilling effect on donations in general is problematic.
		While it effectively deals with the overvaluation problems common in the previous system, it fails to fully consider the importance of strong donor incentives.
	www.law.duke.edu /journals/dltr/articles/2005dltr0019.html (4176 words)

	No. 02CA0837. Boulder Country Club v. Boulder County Board of Commissioners. - April 24, 2003 - Colorado Court of ... (Site not responding. Last check: 2007-10-09)
		The BAA concluded that taxpayer’s petition fell within a statutory provision that prohibits an abatement or refund of taxes based on overvaluation if the taxpayer has already protested the valuation for the same tax year and received a written notice of determination.
		The division held that the 1990 abatement petition was statutorily barred because the taxpayer had previously filed a protest and adjustment appeal based on an overvaluation.
		To conclude that a taxpayer’s request to change the valuation of his or her property under the abatement procedure is always based on an overvaluation would encompass all abatement petitions and render the remaining bases for abatement petitions in § 39-1-114(1)(a)(I)(A) meaningless.
	www.cobar.org /opinions/opinion.cfm?OpinionID=3646 (1919 words)

	[No title]
		Thus, Congress was centrally concerned with railroads' vulnerability to burdensome overvaluation of their property, an evil that Congress specifically identified as one form of prohibited discrimination (H.R. Rep. 94-725, supra, at 113).
		The task of accommodating state interests is, within the terms set by the Constitution, one for Congress, not for the courts, and Congress enacted into law a deliberately unusual although constitutionally valid balance of federal and state interests, a balance that differs from that prevalent in the field of state taxation generally.
		Thus, if a state overvalues railroad property but also overvalues non-railroad property to a similar extent, there is no unlawful discrimination.
	www.usdoj.gov /osg/briefs/1986/sg860291.txt (6809 words)

	Fool.com: Small Caps and Overvaluation [Foolish 8] January 16, 2001
		Before trying to answer these questions, it's worth pointing out that "overvalued" is a dangerous investing term, mostly because it means different things to different people and thus creates ample opportunity for confusion.
		Overvaluation, on the other hand, is not so fl and white.
		And just because Manhattan doesn't look grossly overvalued at its current price of around $40 per share doesn't mean it won't look that way three or six months from now.
	www.fool.com /foolish8/2001/foolish8010116.htm (1074 words)

	Overvaluation and Undervaluation
		The person might mean the exchange rate is overvalued with respect to purchasing power parity (PPP), or it he may mean the exchange rate is overvalued relative to the rate presumed needed to balance the current account.
		Thus, overvaluation or undervaluation of an exchange rate, for either reason (PPP or CA balance) should be thought of simply as something that happens.
		Finally, if the US dollar is overvalued with respect to the Mexican peso, it follows that the peso is undervalued with respect to the dollar.
	internationalecon.com /v1.0/Finance/ch30/F30-6.html (1148 words)

	Reining in Exchange Rates (Site not responding. Last check: 2007-10-09)
		While the economic consequences of the overvalued dollar were more severe in Argentina than elsewhere, there were also serious ramifications for the U.S. economy from the dollar's persistent overvaluation.
		The pattern of rapid capital inflows that lead to currency overvaluations, rising trade deficits, and stock and debt market bubbles seems to be symptomatic of the growing number of financial crises in developing countries (Weller 2001).
		If a new system of exchange rates can be designed such that a recurrent overvaluation of the dollar, or respectively, undervaluation of the euro, can be avoided, the ECB would have an incentive to participate since it would mean a reduction in long-run inflationary risks.
	www.epinet.org /content.cfm?id=961 (5619 words)

	Testimony: Charitable Giving Problems (cont-13)
		With respect to gifts of both tangible and intangible property, we have seen overvaluation by some taxpayers to inflate the charitable contribution deduction at public expense.
		In the case of patent and other intellectual property donations in particular, we have concerns about overvaluation, whether consideration has been received in return, and whether only a partial interest of property is being transferred.
		To address valuation concerns, the Administration’s FY2005 Budget includes a proposal to limit the taxpayer’s initial deduction for contributions of certain intellectual property to the lesser of the taxpayer’s basis in the property or the fair market value of the property.
	www.irs.gov /newsroom/article/0,,id=124194,00.html (611 words)

	[No title]
		The correlation of the rate of inflation with the rate of expansion of nominal domestic demand was lost during 1975-80, when the country was running large current account deficits, but reappeared when external financing for trade deficits stopped.
		The impact of excessive nominal domestic demand and currency overvaluation on the price of real estate is exemplified in Figure 7, which shows how the real rental price of office space in Malaysia mirrored the evolution of Malaysia's current account deficit.
		2.26 The Wealth Effect of Currency Overvaluation: Overvaluation is likely to have caused a wealth effect and a shift in the country's perceived permanent income that affected the consumption-saving functions of people holding assets denominated in local currency (real estate and financial assets).
	www1.worldbank.org /finance/PUBS/HINDS/hind002c.htm (1725 words)

	Valuation Wave Reversion 2
		The ultimate result of these extreme overvaluations was the necessary corrective bust period of the 1930s, the terrible Great Depression era.
		Whether or not the recent war rally is merely a typical sharp bear-market rally or something special, the beginning of a new bull market, largely depends on the current state of the Long Valuation Waves.
		Just as in all the rest of history, investors who buy the major US stocks today at such grossly overvalued levels are almost certainly dooming themselves to low or more likely negative returns for many years to come.
	www.zealllc.com /2003/wave2.htm (3683 words)

	BBC NEWS \| Business \| Vodafone in overvaluation warning
		Vodafone has warned its assets are overvalued by as much as £28bn and it faces a slowdown in revenue growth.
		The news prompted a sharp drop in Vodafone's shares, which slipped 4.75 pence - or 4.06% - to 112.25p.
		Most of the impairment charges relate to the value of the group's German assets but operations in Italy and possibly Japan are also overvalued.
	news.bbc.co.uk /go/rss/-/1/hi/business/4754354.stm (340 words)

	Sputtering Euphoria - The Spectre of Overvaluation
		We are at a crossroads of extreme overvaluation.
		The biggest and most successful mutual funds are now as overvalued as the bloated stocks they're forced to buy.
		Applying this to today's environment should lead one to see why stocks are overvalued and that the most attractive opportunities are the ones most overlooked.
	www.gold-eagle.com /editorials_99/dobbs062999.html (1355 words)

	Bubblettes
		Fifty-six of the 299 metropolitan areas studied, accounting for 32 percent of the total single-family housing market, were identified as being at risk of future price declines.
		The net addition of three metropolitan areas to the list of extremely overvalued markets includes five new listings and two areas that have been dropped.
		The average level of overvaluation declined from 22.7 percent to 19.9 percent, with 171 of the 299 metropolitan areas analyzed showing a decrease in the extent of overvaluation between the first and second quarters."
	askmerv.choice3realty.com /000373.html (542 words)

	Exchange rate overvaluation and trade protection - lessons from experience
		Roughly twenty five percent of the countries for which data are available have overvalued exchange rates, with fl market premiums from 10 percent to more than 100 percent.
		Trying to defend an overvalued exchange rate with protectionist trade policies is a classic pattern, but experience shows such protection does significantly retard the country ' s growth, and delay its integration into the world trading community.
		In fact, and overvalued exchange rate is often the root cause of protection, preventing the country from returning to more liberal trade policies that allow growth and integration into the world community without exchange rate adjustment.
	ideas.repec.org /p/wbk/wbrwps/2289.html (931 words)

	Safe Haven \| Overvaluation - Microsoft & IBM Telling Us Something?
		Every stock with four letters in it seems to move up about a buck a day, but Softee is dying a quick death right now.
		This condition might be with us for the next 10-20 years.
		Overvaluation is one of the two main problems that will afflict our market for the next decade or so.
	www.safehaven.com /article-682.htm (742 words)

	From rand overvaluation to undervaluation : Moneyweb (Site not responding. Last check: 2007-10-09)
		It has taken only five-short months since May for the rand to go from a 15-20% overvaluation to a similar undervaluation.
		Thus the move from R5,60-R6:$ towards R8:$ (a 30-40% shift) gives a much clearer sense of the unsustainable overvaluation of recent years.
		Though retracements are to be expected, rand momentum is on the downside, with little sense of fatigue just yet.
	www.moneyweb.co.za /economy/economic_trends/262813.htm (842 words)

	The Housing Bubble Blog » ‘Decline In The Degree Of Overvaluation’ In Boston, AC
		The Housing Bubble Blog » ‘Decline In The Degree Of Overvaluation’ In Boston, AC The Housing Bubble
		From June to September, the area’s overvaluation dipped from 54.8 percent to 46.7 percent.”
		The decline in degree of overvaluation, which is not to say it corrected itself, is falling.
	thehousingbubbleblog.com /?p=144 (4377 words)

	Smith (WA09) - Press Release - New Democrats: FASB Employee Stock Overvaluation Penalizes Workers & Stunts ...
		The proposal will likely lead to the gross overvaluation of employee stock options and corresponding investor confusion, having a chilling effect on broad-based employee stock option plans.
		The absence of a reliable valuation model, one that takes into account the unique qualities of employee stock option plans, under the FASB proposal will result in the overvaluation of stock options, compromising the accuracy of financial statements and distorting information available to investors and shareholders.
		Legislation introduced in Congress, H.R. 3574, the Stock Option Accounting Reform Act, would require the Securities and Exchange Commission to study the impact of the FASB proposal before it goes into effect.
	www.house.gov /apps/list/press/wa09_smith/20040431pr.html (472 words)

	Hussman Funds - Weekly Market Comment: August 1, 2005 - Late Stage Bull Markets - Overvaluation, Divergence and ...
		In short, we're observing precisely the combination of overvaluation, internal divergence and momentum-based speculation that is the hallmark of late-stage bull markets.
		During the late 90's, the market's final speculative frenzy focused on a narrow group of large-cap tech stocks, which boosted indices such as the SandP 500 and Nasdaq, even as small-cap stocks languished and the NYSE advance-decline line slipped lower.
		Extensive or unattributed reproduction of text or research findings are violations of copyright law.
	www.hussmanfunds.com /wmc/wmc050801.htm (1586 words)

	SSRN-A Primer on Real Effective Exchange Rates: Determinants, Overvaluation, Trade Flows and Competitive Devaluation by ...
		The issues that confront the applied economist or policymaker in using the measures of real effective exchange rates available are illustrated in several case studies from current interest: (i) evaluating exchange rate misalignment, (ii) testing the Balassa-Samuelson effect, (iii) estimating the price responsiveness of trade flows, and (iv) assessing the potential impact of competitive devaluations.
		Chinn, Menzie David, "A Primer on Real Effective Exchange Rates: Determinants, Overvaluation, Trade Flows and Competitive Devaluation" (August 2005).
		This page was served by hermes in 1.30 seconds.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=776009 (427 words)

	Wall Street has a problem: overvaluation \| News Feature
		The overvaluation of shares on Wall Street looks increasingly unsustainable in view of likely interest rate rises and rising tensions in the Middle East.
		Why buying UK property is not a good idea
		It's a fact of investment life that Wall Street remains extremely overvalued on any measure.
	www.ameinfo.com /16466.html (729 words)

	Global Insight // EXTREME OVERVALUATION IN HOUSING MARKET BECOMES MORE PERVASIVE DURING SECOND QUARTER (via CobWeb/3.1 ... (Site not responding. Last check: 2007-10-09)
		Global Insight // EXTREME OVERVALUATION IN HOUSING MARKET BECOMES MORE PERVASIVE DURING SECOND QUARTER (via CobWeb/3.1 planetlab2.cs.umd.edu)
		EXTREME OVERVALUATION IN HOUSING MARKET BECOMES MORE PERVASIVE DURING SECOND QUARTER
		WALTHAM, MA, CLEVELAND-October 13, 2005-The second-quarter update of the Global Insight/National City Housing Valuation Analysis released today shows the single-family housing market became more overvalued from the first quarter.
	www.globalinsight.com.cob-web.org:8888 /About/PressRelease/PressRelease2352.htm (733 words)

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