Stock Profits: Getting to the Core—New Fundamentals for a New Age

What This Book Will Do for You

Can you trust the financial reports you get from publicly listed

companies?

No. Because the norm for reporting includes all sources of rev-

enue, that norm is both inaccurate and unreliable. To develop accu-

rate and dependable information, we need to make “core earnings”

adjustments—the removal of revenue sources that are not perma-

nent and not a part of the core business of the company. We also

need to add in some expenses that are intentionally excluded from

the standard financial statement, such as stock options expense. Only

then can the numbers be considered reliable.

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Preface

The problems of how numbers are reported ...