I've always been a tad skeptical of these earnings reports that come out. Now, they do have to follow a set of rules being public companies and all but they are still afforded some flexibility in how they account for various things. So, in my opinion these reports don't tell the WHOLE story many times.
I do think it's wise to watch the earnings reports for companies you are invested in but Greg makes a key point in paying attention to any dividend they pay out. If they aren't bringing the money in, they sure can't be paying it out. It's a lot harder in my opnion to fudge anything here.
Still, I don't think I would pay that much attention to a low earnings report if the company is in a growing or strong industry and there are many other reasons to like them. If anything, I would use a weak period to buy more, as has been said already.
I'm thinking about gambling a little on Bank of America (BAC). It's been very low for a while and like Buffet says, there's no way to know WHEN a stock will rebound, but I can't see them going away totally. Plus, when everyone is fearful of something is the best time to buy it.
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