The 'nos'...10 Apr 2019 08:00
Couldn't agree more with Lem...production vol is key.
As with every business without the top line increasing the bottom line
suffers whatever one does between the two.
The G bod might be being very conservative in their estimates 'under promise, over achieve.'
Investors should be suspicious about companies that look to 'the future' for their good news, whether earnings, or growth expectations for if the CEO claims to know the future, beware.
Hitting the nos is one thing, hitting them consistently to 'make the nos' should flash warning signs! Is the CEO 'making up the nos?'
Weak accounting, or if the AR is unintelligible its because the management don't want you to understand it. Watch for the CEO trumpeting appearance over substance.
Readers of the G AR will be able to see if the AR statement contains any of the above.
World.com, Enron & Health South were classic examples of management making up the nos, before the fraud was uncovered leaving investors with nothing.