"I am not sure that 8 cents this quarter represents anything close to a 26% earnings growth rate for IFCI. In fact the way I read the research report on the stock 8 cents in this qtr would represent a negative earnings growth rate year over year. Look at "current quarter" and the 9 cents IFCI earned a year ago:"
George, (thx for the link) the basic question is: Why can 0,08 eps in Q2 99 indicate a 26 % EPS Growth compared to 0,09 eps in Q2 98 ???
To be honest, it really seems to be magic, however there are very
dodgy theories on the chatboards which want to give proof of that 26 %
Growth rate (Q2 98 -> Q2 99) is the correct figure.
One of this theories says to calculate this 26 % EPS Growth rate
you need:
1. A calculator
2. Knowledge of complex math formulas ((Division),sp ??)
3. The number of outstanding shares (obviously) plays also
a minor role (Elroy, Snake and I don't know either what the hell
this has to do with EPS growth rate)
4. A 4th Grade Education
Warning: For this calculation you don't need to know that the Market
Markers contol the share price ! That's a different story and has
nothing to do with EPS Growth Rate !!
Well, take a look ! I have copied for you one theory:
Back to lesson # 1
-------------->>>>>>
TIME FOR CLASS!!!!!!!
"Math And Investing: Prerequisite: A 4th Grade Education."
LESSON #1
What does th "ps" in "eps" stand for?
That's right ......."Per Share"
Note: the following requires the use of.... DIVISION .....DO NOT TRY THIS AT HOME.
In Q2 1998, IFCI earned $1.9 Million dollars. To calculate EPS you must know the # of SHARES outstanding.........pssst...that's what the "s" means in eps......
Well in Q2 1998 IFCI had 23,567,998 FULLY Diluted shares.
IFCI stated that they did not foresee an increase in the # of shares outstanding, currently 30,000,000, between Q1 99 and Q2 99.
ALERT !!!!:THE DIVISION COMES NOW.
If IFCI earns the lowest of all estimates it will earn .08 cents PER(DIVISION HERE>>>) share. Now if there are 30,000,000 shares outstanding that would mean they mad $2.4 Million dollars.....Lets see thats $500,000 more than they made in Q2 98 and .....DIVISION...... 500,000/1,900,000=26% EPS Growth.
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