CAND... Reading Between The Lines...
Jeff:
You bring up an excellent point concerning the need for people to read more carefully...
Here is a snipit from the news release:
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For the fourth quarter ended January 31, 1998, net revenues increased by
approximately 77% to $22,609,162 from $12,742,870 in the comparable period
of the prior year. Gross profit margins increased to 28.1% from 26.6% in the
prior year's fourth quarter. Operating income for the fiscal 1998 fourth quarter
more than doubled to $1,296,965 compared to $598,165 in the same period last
year.
Income before income taxes increased to $1,000,688, from $287,042 in the
prior year. Net income for the fourth quarter was $709,144, or $.05 per diluted
share, compared to $1,297,042, or $.11 per diluted share, for the same quarter
last year.
Net income for the fourth quarter of fiscal 1998 and 1997 included tax benefits
of $390,718 and $1,100,000, respectively, resulting from a reduction in the
valuation allowance of net deferred tax assets.
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Obviously, CAND had great numbers... Prior year tax benefit carryovers reduced the diluted EPS...
Unfortunately, most investors don't look beyond that EPS figure... As such, CAND was unfairly discounted today... When the dust clears, CAND should move up nicely...
The lesson here is there are two investing environments... One of facts, and one of perceptions... More often than not, perceptions wins the early battles, but Facts usually wins the War...
Jim |
