post pro forma numbers when diluted numbers are usual, or even mix them to achieve an illusory effect. This I call *deception.*
Hillbilly, you talk about mixing numbers, but you are the one mixed up. The company reported these numbers, not me, but the "correct" figure to look at is the one that gives you the clearest picture of the future.
Some companies take "non-recurring" charges nearly every accounting period and thereby smooth out earnings or hide deteriorating margins by calling certain ongoing expenses "extraordinary". Some even try to capitalize operating expenses to get them off the P&L altogether (until some future period, of course, when they would probably highlight there "non-cash" nature).
E*Trade, thankfully, appears to do none of these things. When they take a charge for an acquisition, I'm incline to believe their description of the charge as "non-recurring". It is more informative to look at the trend in earnings without truly non-recurring items. The press release last Q, as well as the bulls on this thread and on Wall Street last Q, focused on the 16 cent "proforma" number. This Q, that number is forgotten by both the company and those here who wish to find a positive trend where there isn't one.
Close your eyes, buy and hope, Tex. And don't jump on others' posts, calling them liars, when you can't even get your revenue numbers right.
Bob |
