"We expect this transaction to be accretive on a cash basis in the amount of $0.01 in 2002," stated QuadraMed Chief Financial Officer Mark N. Thomas.
What is accretive? The definiton for accretion as listed below makes no sense in the above quote (does Mark subscribe to a word of the day site that gave him this word to use in a sentence today - if so, he needs to try again). Don't they have people at Q checking these releases before they go public? Mark seems to put his foot in his mouth at least once a quarter. Just my opinions.
One entry found for accretion.
Main Entry: ac�cre�tion Pronunciation: &-'krE-sh&n Function: noun Etymology: Latin accretion-, accretio, from accrescere -- more at ACCRUE Date: 1615 1 : the process of growth or enlargement by a gradual buildup: as a : increase by external addition or accumulation (as by adhesion of external parts or particles) b : the increase of land by the action of natural forces 2 : a product of accretion; especially : an extraneous addition <accretions of grime> - ac�cre�tion�ary /-sh&-"ner-E/ adjective - ac�cre�tive /&-'krE-tiv/ adjective
I know what you are saying, but the business vernacular meaning of accretive is that it will "add" to earnings. Why nitpick it, as there are many other business word usages that do not correlate exactly to their technical definition; one of the more goofy is "ramp" as in "ramp up". Many others...check a business glossary of terms sometime.
That makes perfect sense. The majority of press releases I have read regarding companies whose earnings "increase by external addition" of an acquistion of another company refer to the acquistion as accretive to earnings(increasing by external addition).
'followtheq2002' has a tendency to [try to] put a spin on Q issues and topics that give you the impression the Q is doing "it" wrong or hasn't done "it" right, regardless of whatever "it" may be.
You, 'shmolton', are correct in concluding the use of the word 'accretive' is apropos.
I'm certain 'followtheq2002' reread his post and, by his own ability, realized that the definition does indeed qualify the use of the word 'accretive' with respect to the earnings of the acquired entity.