Amazon.com was trading at $16.79 per share when it reported positive OPS (green bars) for the first time in 3 years and negative EPS (gray bars) for its 12-months ended 3/31/02. Amazon's OPS was also an all time record for any of its previous 12-month periods. Since then it has maintained its positive OPS and its negative EPS and its share price closed at $21.13 on February 12, 2003, a 25.8% increase even though it had not generated positive EPS for any single quarter in its history.

Sears was trading at $52.46 when it reported negative OPS (red bars) for the first time in 5 years and positive EPS for its first quarter ended 3/31/02. Since then it has generated negative OPS for its last three consecutive quarters and its share price closed at $21.50 on February 12, 2003, a 59% decrease even though it has generated positive EPS for its last 5 consecutive quarters and recently announced "record" EPS for its year ended 12/31/02.

Among our many other "first calls," we warned on Sears' credit card receivables problem weeks before they disclosed it. Read More.