The revenues are up 21% The costs are up 30% The bottom line suffers
And then CEO says: "Hey do not look at those numbers. Look over here. Our EBITDA is going through the roof!"
And then you look at the EBIDTA to see why it is going through the roof and see that depreciation went up 50%! Hurrah. The guy just cooked up an EBITDA growth by taking a depreciation hit. That takes a lot hard work and courage... What are we a bunch of yahoos? (No pun intended).Dude, learn to manage your costs and will not have to play with depreciation!!!! Hopefully somebody will give this guy hard time tomorrow during the conference call.
I do not see any positive price action tomorrow based on the fundamentals. The stock is still cheap at these levels but who knows how the future quarters are going to look like. If the earnings trend of the last two quarters sets in, then right now might not be a bad time to sell, despite of the huge recent price drop... Oh well.