What can be done to limit exposure to misleading EPS (Earnings Per Share) figures?
StockDiagnostics.com believes the answer lies in a careful examination of earnings per share (EPS) figures in the context of “OPS” (Operational-cashflow Per Share). We have analyzed the Cash Flow Statements and the Income Statements of thousands of U.S. publicly traded companies and have identified a series of conditions that constitute early warning signs of a company’s health. We have named these conditions, when combined, “The EPS Syndrome,” and have filed patents on their discovery. Additionally, negative “OPS” (Operational-cashflow Per Share) constitutes evidence that a company should be closely monitored. Fundamentally, any cash flow calculations based on EBITDA or CFPS must be contrasted with StockDiagnostics.com “OPS” (Operational-cashflow Per Share).
