further thoughts-isn't this a dumb way of presenting this, they earned 0.28 per share less a one time charge. Am i wrong in assuming that this is a future liability that by law had to be written off in total now, even if it does not have any significance for right now ?
>>Stupid way to do it. Management does not make sense, they did it all wrong and still they didn't learn anything from the past.<<
Hmmm. Business seems to be growing. Operational earnings were quite good. Will be moving towards further manufacturing capacity so that they don't have to sub-contract so much.
They have a net loss because they account for preferred stock in a way that is a one time, non-cash write-down. This might result in a hit to the market price, at least for a while.
If it bothers you that they did it that way [how else could they do it--China North East Petroleum (NEP), for example, tried to get around such a thing and ended up having to restate past earnings and is suffering in the market] I suggest that you sell and move on.
As for me, I like quite and neat write-offs that are easy to understand and do not have future ramifications.