Quote:
Originally Posted by WSSix
From a long term point of view, wouldn't it better that a company grew by 32% even if they did indeed miss expectations by 1 penny? I realize the price of the stock is based on expected earnings but 32% growth year to year is good. I personally would rather know they had great growth. Am I wrong in thinking that's more important to me since I'm long term?
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It can be real good and it can be real bad... the important thing to determine is why this 32% increase in top-line growth yielded no benefits to bottom line. If this is readily explainable and somewhat of a one-time deal, then it should be back to business as usual. If this is not, then further evaluation is needed....