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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (10133)	2/5/2002 7:33:11 PM
From: sandiegobear	Respond to of 19219

David, Operating earnings are very important but I think that what rankles is that the rules are being changed in the middle of the game. When investment income was good, companies had no problem counting them but now that they're bad, all of a sudden they don't count much. This is the whole problem with pro forma - "if you don't count the stuff we screwed up on, we're doing great."

To: David Howe who wrote (10133)	2/5/2002 9:21:26 PM
From: High-Tech East	Respond to of 19219

<<Ken, Operating earnings are the most important tool when evaluating the value of a company. They are helping the investor by pointing out that operating earnings are stronger than the net income numbers would lead you to believe.>> ... no argument from me ... investors can evaluate a company any way they want ... but net income and operating income are not the same thing - as you obviously know ... ... the Price/Earnings ratio is one thing ... the Price/Operating Earnings Ratio is another (although I never heard the term used) ... they are not interchangeable ... ever ... and most especially when used to confuse or deceive investors ... Ken Wilson