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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (15120)	2/17/2002 9:23:27 AM
From: Wyätt Gwyön	Respond to of 74559

yes, reported earnings would be lower if corporations did not distort their profitability appearance through options and other means such as swiping from their pension funds. on the other hand, the GAAP figure includes some truly colossal writedowns of all-stock acquisitions (e.g., JDSU's 50BILLION) which are not reflective of the SPX's profitability. the JDSU figure alone increases the GAAP PE by over 10%. so it is hard to know where to draw the line. note that Barron's recently switched from reported earnings (higher PE) to operating earnings (lower PE) in its SPX PE numbers.