The Great Deception by THC
Look at earnings per diluted share in SEC 10Q for quarter ending 6/30/12. Add the two lines for current operations and discontinued operations. You will see that they actually lost $0.01! Here is the really strange part about how this stock price has been manipulated:
1. Analysts use only the "current operations" part of the earnings per share to write their glowing praise of THC.
2. My trading platform charts display earnings of $0.10 for quarter ending 6/30/12. Analysts have adjusted the $0.10 to $0.40, due to the 1:4 split. So now they have turned a loss into a substantial gain.
3. My trading platform displays earnings of $0.37 for current quarter ending 9/30/12. In this case look at the SEC 10Q for quarter ending 9/30/12. You will see that this time they added earnings from current operations($0.28) to discontinued operations($0.09) to get the $0.37.
4. THC issued a press release on 11/7/12 claiming the $0.37 as earnings. Remember this is after the 1:4 split which shows a higher profit per share. On a unadjusted basis, without the 1:4 split this is equivalent to $0.09 per share. Remember in this case they claimed both the current operations and discontinued operations because they made money on the discontinued operations. Seems they only include discontinued operations if it helps to inflate their price. When they have a loss then it is just ignored!
5. After you look at your platform for earnings posted for quarter ending 6/30/12, you will see either $0.00 which is the loss adjusted for the reverse split; $-0.01, which is the unadjusted correct value (unsplit basis); $0.10, which is current operations only (unsplit basis); or $0.40, which is current operations adjusted for the 1:4 split as used by analysts.
IMO, THC new about data services picking up on the current operations only figure and decided a reverse split would make quarter ending 9/30/12 look really good especially if they included the gain from discontinued operations which inflated the earnings by $0.09. If they had not done the reverse split, and assuming we are going to deal apples to apples, (current operations only) they actually made less in the current quarter than the last!!!!! Current operations earnings for quarter ending 9/30/12 was only $0.28, which is equivalent to 0.07 on an un-split basis. (See 10Q)
It appears from other news items that insiders have taken considerable advantage on this situation. Notice that even the CFO bought a large block of shares before the stock took off.
I would be most interested it know what your platform displays for earnings for the past two quarters.
In addition, it appears that THC management has used the stock to transfer cash from the company to the executives by the company purchasing stock from the executives. This scheme permits the executives to receive substantial income, at inflated prices, from their stock at 15% tax rate, flushing out the shorts, and then selling treasury stock at inflated prices. This sure looks like a classic pump and dump in a midcap stock!
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