Change Leads to Uncertainty Evaluate a Company’s Earnings Power, not Current Earnings

Ramifications of High-Class Problems

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Just missing a product cycle is generally fixable. So are problems that result from a company outgrowing its infrastructure – it’s a high-class problem to have, but can result in some real earnings trouble. Botched acquisitions can also create interesting opportunities if we believe the delayed cost savings or strategic benefits will eventually increase earnings.
Source: http://www.valueinvestorinsight.com/