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Don't Be Misled By Trailing Earnings

|Includes: Sierra Wireless, Inc. (SWIR)

Many authors are using trailing earnings to make a Sierra Wireless bullish case. However, after restructuring their wireless business and selling their AirCard business to Netgear (NETGEAR Completes Acquisition of Select Assets of the Sierra Wireless AirCard Business), trailing earnings are irrelevant. Their current trailing P/E is 12.73, suggesting a cheap stock. But, their forward P/E is 28.

I am bullish on SWIR for many reasons, but a cheap trailing P/E is not one of them.