[oh8eleven]

Your argument would have worked just as well for Enron until early 2001.
But their stock price was artificially and purposely inflated by corruption and criminal activity. Big difference.
BTW, did anyone ever figure out WTH they were selling?

[Flying Circus]

My point is you need to understand something of the company beneath the earnings statements. This article reveals what underlies the stellar earning of recent years. Earnings are great, unless they are hollowing out and destroying the value of the company underneath. I believe while IBM is displaying magnificent earnings in the near term it comes at cost to the value of the brand and trading away the best assets.