One of my favorite screens searches newsfeeds for “record” revenues and earnings. Yesterday that screen turned up International Assets (Nasdaq:IAAC), which claims “record” non-GAAP operating revenues.
International Assets is a financial services company focused on international equities market-making, international debt capital markets, foreign exchange trading, commodities trading and asset management. Given that emphasis, it should be heading for a dirt nap, right?
Actually, International Assets did OK last quarter, considering the circumstances. Sure, earnings were down 74% from last years torrid pace, but at least it had positive earnings. That's a claim that few of its peers can make. GAAP revenues declined year-over-year but never fear, adjusted non-GAAP operating revenues reached “record” levels. And if they didn’t, I’m sure those clever accountants would devise a new non-GAAP measure to soothe investors.
All sarcasm aside, this was not a great quarter for IAAC, but not a disaster either. Investors appear pleased that, for now, it looks like a survivor.
Technically, IAAC broke both a multi-month downtrend and the 50-day moving average yesterday. That’s the good news. However, it did so on low volume and resistance looms around 10.
I’m going to wait and see how this one develops.