There's a stock I own that has partial ownership(25%) of a private company that I think shows a lot of potential. I've been trying to learn more about this private company to guide my investment decisions, but am hitting a brick wall.
So far, the only thing I've been able to dig up is in the public company's 10-k/10-q, I was able to derive their net income based on the equity method of accounting https://www.investopedia.com/terms/e/equitymethod.asp (they take the private companies net income attributable to their ownership, and apply it to their net income and their investment on their balance sheet)
The downside is, I'm not really able to determine how these net income figures are determined. Are the numbers inflated because investments are being capitalized? Are the losses because of goodwill impairment, and not cash losses? I can't tell.
Any suggestions?
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