Yesterday the stock of Italian offshore oil services company Saipem SpA imploded nearly 40% after the company said it expected 2013 net profits to be, oh, just around 50% below current consensus. In other words, merely another case of irrational investor exuberance where actual corporate cash flow is orders of magnitude below where the sellside expected it to be, and so indicative of what happens every time hopium collides with reality (and, tangentially, is the real valuation case for most public stocks were they to report real, not GAAP-massaged earnings). Only in this case there was a ... Read More