Forum Archive Index - August 2000

[Brian Gale <brigale@i4free.co.nz>]

Hi John
         I'm open to correction but normal profit is EBIT (earnings before 
interest & Tax). Therefore a lesser amount is available to shareholders.
         As you say the financial news is pretty good, however although 
earnings are up 3x profit is only 2x so costs are higher.
         I suppose the market reaction is typical......good positive news 
and down she goes.  Speculation and the price goes up. Not logical is it ?

  Regards
Brian


At 12:02 09-08-00 +1200, you wrote:
>Nick,
>You say "no big news" but profit up 97% is surely pretty impressive.  Like
>you though, the market looks like it was perhaps expecting something else as
>the share price has dropped under $3 again.
>I do have a couple of queries however about their announcement.
>Could anybody enlighten me as to what is meant by "normalised  profit" ?
>How can profit be up 97% but earnings per share only up by 41%? Surely
>profit is earned for shareholders and if this is up by 97% then earnings per
>share should also be up by 97%?
>Cheers
>John


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