REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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Presentation
of low or negative EPS values
In order
to fix the upper and lower extremes of the share price scale,
the lowest EPS value is ignored. As a result, low EPS values
may be rendered out of range, and no attempt is made to plot
these within the graph.
When
the EPS plot is required to join values lying within the graph
with those which lie beyond the bottom range of the scale, the
outlying values are notionally plotted against the same scale
extended downwards, and the angle of inclination of the plot
itself is thus established. For low EPS values which are positive,
the steepness of inclination reflects the rate of decline or
growth between values lying within and beyond the graph.
For EPS values
which are negative, however, the angle of inclination is purely
theoretical, and almost vertical, since the floor of a log scale
is infinite and can only ever accommodate values greater than
zero.
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