Call me crazy, but I like seeing bad reports from APWC because it increases my confidence that the company has bona fides. For those of you who harbor doubts about the company's authenticity, look to cash flows. The auditor needs to go to just a few sources, namely the banks to verify the cash is there. As opposed to internal documents and counterparties to track down the other effects in net income.
APWC generated $26MM in cash from operations in 2011, compared to ($3MM) in 2010 and $18MM in 2009. Is the occurence of goodwill impairment and flooding effects indicative of future results? No. APWC now doesn't carry any goodwill (price paid for intangibles) on its books now, and flooding each year is independent of the prior year.
I own all the shares of APWC I care to own. If you haven't made your position, the valuation justifies performing your own due diligence.
Agreed, reporting the loss actually increases my confidence in the validity of the company, as of course does the approval of its books by Ernst and Young. Why would a scam company ever report a loss or hire a legit accounting firm to audit its books?