Pj568

Can We Get Back to Stock Picking Now?

Ryan,

"And sure, let's just get rid of GAAP and start using EBITDA instead"

You missed my sarcasm. BSX is already half way there as they adjust earnings for standard amortization.

Can We Get Back to Stock Picking Now?

Wondering why a decrease of 28M in operating earnings is considered a "strong quarter"? Their increase in actual earnings was due to less "other inc/exp" recorded of 82M. On a GAAP basis they did make 10 cents which was up from 7 cents.

Writers don't even know what earnings are being adjusted for and don't care if its proper or not. The 20 cents/share referred to is due to BSX adding back 7 cents of standard amortization exp. The next step could be to start reporting EBITDA and forget GAAP altogether.

Caterpillar Is Undervalued

Besides your projected cash numbers did you also consider the current state of their lending operations since they have a significant role in financing their customers? What's their status on access to capital, renewal timeframes and cost of debt. What about bad debt expense and reserves? There is a lot more than a simple cash flow guestimate at work in the market today.

Wall Street Breakfast: Must-Know News

Many of the numbers referenced above appear to be adjusted and not actual. WB and BSX are two that jumped out as being off. One would expect adequate disclosure from the SA Editor about the numbers being referenced. Constantly reporting and discussing adjusted numbers is a sign of weakness that shouldn't be ignored.