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EPS is a Misleading Indicator

Hoover's, Inc. (HOOV)
AstroPower, Inc. (APWR)

On February 10, 2003, Hoover's shares hit a 52 week high up 76% and Astropower's a 52 week low down 77% over their year earlier prices. In the 12 months ended with the reporting of their 3rd fiscal 2002 quarters, Hoover's reported records for positive OPS (green bars) and negative EPS (gray bars) and AstroPower reported records for negative OPS (red bars) and positive EPS (black bars). Note: Hoover's recently agreed to be bought out by Dun & Bradstreet at a P/E (share price to EPS) ratio of over 79 and at a P/O (share price to OPS) ratio of 14.

The validity of EPS (earnings per share), long considered by Wall Street to be the leading predictor of value, is being challenged by OPS (Operational-cashflow Per Share). StockDiagnostics.com monitors cash flow for over 10,000 companies and is the exclusive publisher of OPS data.

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