Open Question

Can a negative EPS ever be good?

Asked by kikiritka 1 month ago - 5 answers - 419 views
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if your long, Palm is a good play.... let them take there loses now and they can
benefit in the future.... not as good as apple but who can beat them at there
game!!!

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look at palm ,non stop red quarter after quarter ,worse than last year yet its
up 1600% from its low back in dec.if the street beleives that the bad quarters
will get a little better than it will rally.palm is just way way over played
here aand in nothing but short covering

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It all depends. You need to reconcile the pro-forma EPS from the GAAP EPS.
Sometimes a one-time or non-recurring item could turn a pro-forma gain to a GAAP
loss. Also look for the impact of write-offs and impairments, especially from
intangible assets. A an occasional loss from such items is OK. A consistent loss
is not acceptable.

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A single quarter's loss can't be looked at in isolation. Sometimes the company
needs to take restructuring or other one-time charges for longer term strategic
purposes. DB

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Negative EPS can sometimes be good if the company loses less than analyst
estimates. Just because a company is not profitable yet doesn't mean it won't be
profitable in the future. Just check out PALM's last quarter.

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