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ratobranco

12/24/09 9:43 PM

#19440 RE: Headley Lamar #19433

"The problem that I see with your school of thought is that a lot of the value for this stock is based upon future earnings and, the prospect of an up listing. If the up listing occurs, there will be no choice but to use the GAAP EPS because that is a requirement for any US stock exchange. So now we are looking at the GAAP EPS no matter what, which just had it's legs chopped off."

I have to be honest, you reaction makes no sense to me. There are plenty of companies with ITM warrants that have negative GAAP earnings because of the quirk. They report GAAP and non-GAAP side by side in the press release and 10Q, and they explain the discrepancy. With that approach, they seem to be doing quite well--selling at very nice premiums with respect to their non-GAAP earnings. If we're all too stupid to read between the lines, how does that manage to happen? How does your school of thought explain it?