Accumulated deficit
The accumulated deficit is indeed a cumulative total of accounting losses from inception to date. Thus, XICO must have suffered significant net losses in the past. This does provide a tax benefit as noted in their annual report of a large tax loss carrover benefit of, I believe, $30+ million (which should be equal to the accumulated tax loss times an estimated tax rate-probably around 40%). Thus, XICO can earn around $70 million in tax free earnings. Note that XICO does not now pay any material amount in taxes on its earnings. Since the earnings are currently untaxed, this may provide a lower PE for XICO than comparable taxpaying companies.
An aside to Blaine: In looking back over your postings of info from Brian Harvey, you should sell whenever he calls. His statements have proven to be 100% false- "strong institutional support at 12," "this stock won't see 14 after the earnings report," "looking at a blowout quarter-.18-.20 per share," "short-term target of 20," "Ready to raise to strong buy," etc. |
