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EPS is a Misleading Indicator

Numerical Technologies, Inc. (NMTC)
Suprema Specialties Inc

Numerical Technologies (NMTC) was acquired for a 64% gain after it reported record negative EPS (gray bars) and record positive OPS (green bars) for its 12 months ended 9/30/02. *EPS proved to be a false indicator of NMTC's value since it did not reveal the strong underlying cash flow condition.

Suprema Specialties Inc filed for Chapter 7 bankruptcy, a 99% loss after it reported its 15th consecutive quarter of record EPS and its 20th consecutive quarter of negative OPS (red bars) for its 12 months and its quarter ended 9/30/01. *EPS proved to be a false indicator of Suprema's value since it did not reveal the the weak underlying cash flow condition.

StockDiagnostics.com specializes in monitoring cash flow for over 10,000 companies and is the exclusive publisher of OPS data.

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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