The market for G Mining Ventures Corp.’s (TSE:GMIN) stock was strong after it released a healthy earnings report last week. However, we think that shareholders should be cautious as we found some worrying factors underlying the profit.
To understand the value of a company’s earnings growth, it is imperative to consider any dilution of shareholders’ interests. As it happens, G Mining Ventures issued 5.8% more new shares over the last year. Therefore, each share now receives a smaller portion of profit. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. You can see a chart of G Mining Ventures’ EPS by clicking here.
