AT THESE PE LEVELS, THERE IS NOTHING MORE IMPORTANT THAN YEAR OVER YEAR AND SEQUENTIAL TOP LINE REVENUE COMPARISONS. THIS IS WHY EVERYONE PUSHES THE HECK OUT OF THEIR PRODUCT - TO MAKE THE TOP LINE REVENUE NUMBER.
AND THEN THEY USE THE BEAUTY OF PRO-FORMA ACCOUNTING AND MASSIVE EXPENSE CUTS TO MAKE THE EPS. EVERYWHERE I LOOK SERVICE IS IMPACTED BIG BUT THE FAT IS ALSO CUT OUT SO IT'S A DOUBLE EDGED SWORD. THE HOPE BY THE EXECUTIVES AT THESE COMPANIES IS THAT SOMEDAY SOON THE PRICE PRESSURE WILL SUBSIDE AND DEMAND WILL PICK UP AND THEN WE WILL HIRE PEOPLE BACK AND EASE THE ACCOUNTING GAMES OUT OF THE SYSTEM.
THE DEEPER YOU GET THE LESS ROOM YOU HAVE TO WORK WITH.
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