PMC-Sierra (PMCS) Message Board

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Technology Stocks : PMC-Sierra (PMCS)

PMCS 11.65

0.0%

Jan 25 4:00 PM EST

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To: Danny Chan who wrote (1921)	7/16/1998 5:51:00 PM
From: Trader Dave	Read Replies (1) of 3818

Good observation, you're on to a strange facet of share counting rules. When a company reports a loss for the quarter, they're only supposed to use the non-diluted total of all shares (this means the share count excludes anticipated option exercises) However, to properly report the operating eps, they need to divide operating eps by the share count used in a profitable quarter. I do note that the number is something like $0.2967. Notice that the company PEGGED the numbers, this is probably reflecting a mature discipline of avoiding beating the numbers every quarter to avoid the problem of spiraling expectations. I still don't know where the stock will go tomorrow, but I'm satisfied so far, a lot depends on the guidance from the call. TD

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