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  • Earnings Quality: Why It's So Important Now and Which Stocks Are Suspect [View article]
    If I have learned anything during my 35 year investment life, it is you can not trust the income statement or balance sheet of ANY corporation. I learned this lesson in spades the past year. We are now finding Enron is becoming the rule, not the exception. I was dumb enough to actually believe the SEC has protecting my interest at heart.
    The worse part of this entire lesson is now that my investments have been halved, if I were to sell the rest, where would I put the money. I could buy Gold but that would only guarantee that gold would go to $500....lol

    Another thing I have learned is that the author of this article is correct but you also have to watch one other thing on the balance sheet and that is inventory. Companies can adjust their earnings by increasing or decreasing the value of their inventories. This adjustment effects earnings by only pennies but sometime 1c is all that is needed to meet expectations.
    Dec 03 09:08 am |Rating: 0 0 |Link to Comment
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