I've never been a "fan or follower" of EPS and related for companies or indexes or whatever. Therefore, I am not studied enough to fully understand all of meanings of EPS and related; versus those who place great value in these numbers.
I have read reports/stories during the past 10 years or so about ongoing changes in accounting standards. Fancy accounting is the name, as I understand this.
Dismissing EPS and such, for me; is replaced with price performance. Regardless of reported numbers, a company may be too young to show a decent EPS (but is in the right business going forward) or an older company may be too old and missing the move in what is really going on in the world economy(s) and is going to get its "clock cleaned" from not being so relevant any longer.
Pricing of a stock or index (SPY, etc.) tells me what folks are really thinking, regardless of EPS, etc.
This first link is related to Alcoa and reported "fancy accounting" methods:
http://www.zerohedge.com/print/520439This link is related to more changes in accounting standards with other implications for real information.
http://www.nytimes.com/2016/01/03/business/fasb-proposes-to-curb-what-companies-must-disclose.html?_r=1I don't have, nor will I search for data; but I am sure many "newly born" companies have had really crappy EPS in their young lives; but this does not scare me away as an investor, if it appears that great potential exists.
What say you???
Thanks.
Catch
