Fedders A6U10W7A
billion asset-impairment charge, which basically wiped out 10 years worthgof earnings. Yet when the company reported its earningon Jan. 7, its stocik price rose by more than 8 Conventional wisdom among Wall Street stock analysts is that investorsz should ignorelarge write-offs because they provide littl insight about future performance. That certainlhy makes sense duringa recession, when restructurinv is a part of many corporations’ strategies to position for recovery. Many of the quarter’s goodwil impairments are the result of continued deteriorationb in economic conditions and the related declines in theequity markets, rather than residual baggagre from poor management.
Indeed, Eden Prairie-based Supervalu managemengt pointed out that its impairmentcharge wouldn’t have been recorded if not for accountinhg regulations. Twelve Minnesota including Supervalu, reported first-calendar-quarter extraordinary charges of $20 million or Amazingly, 11 of the 12 saw their stock prices go up on earningszday — five by Are investors ignoring these or did pre-announcements mute the effect?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment